Kodak have made a decision to shut down its digital camera business in order to remain afloat, stopping sales and production of digital picture frames, pocket video cameras and digital cameras during the first half of 2012. This decision will enable Kodak to switch their focus to commercializing its current brand program along with desktop inkjet printers and retail-based and online photo printing.
The end of an era for Kodak is marked with this news. Sadly for the digital camera business, the company reacted very slowly to the expansion of digital imaging, having its products outmatched by cost-effective digital models from competitors and afterwards dismantled by photo-capable smartphones.
At the moment, three-fourths of Kodak’s overall profit come from its digital businesses, although those include Commercial and Entertainment Films, and Graphics and Enterprise Solutions and Services and Functional and Digital Printing units. Kodak anticipate to sustain $30 million one-off loss in closing its digital camera department, although this should come as a pleasant surprise given the fact that at the beginning of the year the company predicted $100 million operational cost savings.
Kodak announced that at the moment it has nearly 100 000 kiosks and digital prints’ order stations throughout the globe, along with integration with online galleries and social networks. After selling off assets, including its digital camera business, the company filed for Chapter 11 bankruptcy in the end of January in order to remain afloat.