Cisco is shuttering its Flip camera business and axing 550 jobs, says Reuters:

Ouch! Remember when the previous-generation iPod nano was supposed to kill the Flip with its back-facing camera? That didn’t come to be. Here’s what happened instead…

Everyone got a smartphone with 720p video recording. Plus, FaceTime… Yes, video enthusiasts will always opt for standalone camcorders, but the majority of regular consumers don’t need a Flip because they can shoot kitten videos in 720p using a smartphone. The best camera is the one that’s always on you, someone said. Let’s not forget video editing phone apps and social sharing capabilities – something dedicated camcorders can’t do. I guess it just wasn’t meant to be for the Flip. I’m afraid the same thing could happen to other gadgets (hint: standalone GPS navigational devices) as smartphones increasingly pack in functionalities that go far beyond our preconceived notions.

Matter of fact, I wrote about this trend nearly two years ago.

  • Next iPod nano to add camera, retain current form factor? (9to5mac.com)
  • Sources: New iPad will be available around the end of March (9to5mac.com)
  • Facetime-HD coming? (9to5mac.com)
  • iPad 2 will have the same cameras as the iPod touch (9to5mac.com)