According to a recent report published by CNET News, Kodak has decided to put an end to its camera business. The company issued an official statement on Thursday explaining why they were forced to take such drastic measures and what will they do in the months to come.
Kodak surprised everyone today after announcing that the company plans to withdraw all its digital cameras, pocket video cameras, and digital picture frames from the market by the end of June 2012. Thus, the company will focus on brand licensing and will try to attract companies in search of new patents.
You don’t have to worry that you won’t benefit of consultancy for the cameras you have already bought from the company as Kodak will continue to offer its online Kodak Gallery service and retail-based photo printing. The only products that will still be available on the market are its inkjet printers.
Kodak Consumer Business president Pradeep Jotwani declared earlier today that until now, the company tried to improve margins in the capture device business by narrowing its participation in terms of product portfolio, geographies and retail outlets. Given these circumstances, the decision to eliminate cameras is the logical extension of the said strategy. Their statement is grounded on a thorough analysis of the company’s trends and evolutions.
Kodak was the first major company to introduce handheld cameras to consumers. Ever since its appearance in 1900, the firm was considered a pioneer of the imaging technology. During the past decade, Kodak lost its leading position as a consequence of the strong competition coming from other producers of digital cameras. The situation became a lot worse in more recent years as many more consumers prefer to use smartphones to take quick photos.
Although executives try to prove that the whole economic situation of the company is under control, Kodak filed for Chapter 11 bankruptcy last month. According to their declarations, the company should emerge from bankruptcy next year. They have, nevertheless, secured $950 million to make sure they get it through the process.