After Losing Market Share, HP Decides to Stop Making Digital Cameras
Erick Schonfeld
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Hewlett-Packard is retreating from the digital camera business. It will stop manufacturing its own cameras, and take a $30 million charge to refocus investments on its Print 2.0 strategy, which involves making Web content easier to print and encouraging more printouts. (Remember, HP makes a huge chunk of its money selling ink cartridges). The writing was on the wall on this one. HP’s share of the digital camera market in the U.S. shrank precipitously this year—from 7 percent at the end of 2006 to 4 percent at the end of June, according to the latest figures from IDC. Back in 2001, HP’s market share peaked at 15 percent, ranking it third among all digital camera brands. It now ranks No. 8. This is a typical move for CEO Mark Hurd—cut your losses and move on. (The HP brand could live on, though, licensed to another manufacturer).
It’s too bad - one thing that HP digital cameras had was ease-of-use. They were the most simplistic, easiest to use cameras on the market and really did embrace the point and shoot philosophy.
The CCD chip and quality of the shots - that’s another story.
Mark Hurd is the Jack Welch of the 21st century, and I love it! If the unit is underperforming, don’t invest more into the struggling venture, just dump it and focus on your core competency. I hope Carly Fiorina is taking notes.
Smart decision…focussing on key strengths…and throwing off the dead weight..way to go
http://www.meetingflex.com
Hewlett-Packard is good only for print
Mark Hurd is retreating in all markets HP is in. The Board pays him so much to manage a long-term across-the-board retreat that there is no interest in really competing in any markets.
To bad. I’ve always enjoyed their digital camera brand.
he is not retreating in software
Poor Gwen Stefani. This is B-A-N-A-N-A-S!
Good move HP, “ecouraging more printouts”. Very green business model there.
When are consumers going to wake up and realize they are paying $4,000 per gallon for inkjet printer ink?
What’s next….Snapfish?
Btw, your HP Blog printing feature is cool, but I can’t seem to get rid of that window in Firefox.
Good! We are about to start making cameras!
The MSPictCam coming to a K-mart near you!
http://fakesteveballmer.blogspot.com
North Shore Bogan — I laughed so hard my face hurts. Thanks.
My guess is that Canon, Nikon, and Kodak (the cameras people REALLY want) are just too low-priced nowadays. You can get a great little Canon SD1000 for $150 online, which kills anything HP ever made.
I really don’t think that “encouraging more printouts” is a solid business decision, at least not in the not-so-long term.
Here in the office one of the printers is broken for 2 weeks or so and instead of complaining people are realizing they just don’t need all those 50 pages of a random manual in paper.
First the iPaqs now this!
Hey yeah, right, the iPaqs are not dead they are just late.
My first digital camera was an HP back in 98 and I really loved that little thing. I almost forgot they made them though as Nikon and Canon have really stolen the show.
I wonder if there are going to be some huge discounts on all the current HP camera models now that they are being discontinued?
Probably a good move. Personally, I have never even considered buying an HP camera.
Har. I bet many people are looking at this piece of news and thinking “maybe I’ll pick up an HP camera when the closeout sales begin…”
Well, this a quite surprising move from HP’s CEO. HP digital cameras aren’t high-end products but still that they are still bought like bread in other international markets! And I totally agree with you Eric when you say that they had better to license this activity to others than just to stop it
Did this reporter (Erick) even read the press release? HP is going to OEM cameras, it is correct they are going to focus on print but story is not accurate.
HP to Seek New Business Model for HP-branded Cameras
Wednesday November 7, 4:00 pm ET
PALO ALTO, Calif.–(BUSINESS WIRE)–HP (NYSE:HPQ - News) today announced that it will seek an alternative business model for its HP-branded cameras and shift resources toward its Print 2.0 growth initiatives.
HP is currently working to identify an original equipment manufacturer (OEM) partner that would be licensed to design, source and distribute digital cameras under the HP brand. HP will continue selling its own cameras through the holiday season and intends to have the partnership arrangement in place in the first half of 2008. http://www.hp.com/hpinfo/newsr.....1107c.html