vacancies advertise contact news tip The Vault
facebook rss twitter

Kodak shuts digital camera business

by Steven Williamson on 10 February 2012, 09:54

Tags: Kodak

Quick Link: HEXUS.net/qabci5

Add to My Vault: x

Eastman Kodak Company, commonly known as Kodak, is shutting down its "dedicated capture devices business" which includes digital picture frames, pocket video cameras and digital cameras.

The phase-out, which is scheduled to take place during the first half of 2012, will enable Kodak to save more than $100 million a year, the company said. But it will incur, approximately, a $30 million charge from the exit of the business.

"For some time, Kodak's strategy has been to improve margins in the capture device business by narrowing our participation in terms of product portfolio, geographies and retail outlets. Today's announcement is the logical extension of that process, given our analysis of the industry trends," said Pradeep Jotwani, President, Consumer Businesses, and Kodak Chief Marketing Officer.

Kodak will licence the brand to other companies and will continue to make film-based, disposable cameras and offer camera accessories and batteries. However, it will now concentrate heavily on other areas of the business including online and retail photo printing, desktop inkjet printing and its photo kiosks and digital dry-lab systems.

In the mid-1970s, Kodak owned a 90 percent market share of photographic film sales in the United States. However, it hasn't made a profit since 2007. In January this year it filed for bankruptcy in an effort to stabilise the company.

The company says it will honour all existing warranties on its products and continue to provide technical support.

Source: Wall Street Journal


HEXUS Forums :: 3 Comments

Login with Forum Account

Don't have an account? Register today!
really not expected…but means a few other manufacturers are now sensor-less!
Kind of saddened by this, especially as an ex-Kodak digicam owner. I would have also thought that digital picture frames fitted into the “accessory” business that they wanted to hold on to.

Can't see ‘em making a shedload of money from disposable film camera’s though - especially when petrol stations/poundstores are selling dirt cheap digital cameras.
I don't think that's what they're aiming at. The pro film market is very lucrative and they'd be able to lose a shedload of jobs and make more margin. Why stay in a crowded market, there is no way they could stay in touch with someone like samsung who make the whole of the camera parts.