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Just Press the Shutter and Kodak Will NOT Do The Rest Anymore
Posted By photoxels On February 9, 2012 @ 6:10 pm In Press Releases | No Comments
Perhaps the most famous camera marketing quote ever published was “Just press the shutter and we will do the rest” or some variation to that effect. Well, it won’t be the case anymore since Kodak has decided to stop producing digital cameras, pocket video cameras and digital picture frames. They will lay off all workers involved in those departments and license the “Kodak” name to one or more third parties who are interested to sell digital cameras, etc. with the kodak brand on them. Kodak will continue to be active in some photographic markets, including desktop inkjet printers and retail-based photo kiosks. The image sensor business was sold a couple of months ago.
Plans to phase out dedicated capture devices business
ROCHESTER, N.Y., February 09 — Eastman Kodak Company (the “Company”) (OTB: EKDKQ.PK) announced today that, as a result of its ongoing strategic review process and commitment to drive sustainable profitability through its most valuable business lines, it plans to phase out its dedicated capture devices business – comprising digital cameras, pocket video cameras and digital picture frames – in the first half of 2012. Kodak will instead expand its current brand licensing program, and seek licensees in these categories. Following this decision, Kodak’s Consumer Business will include online and retail-based photo printing, as well as desktop inkjet printing.
Kodak has contacted its retail partners, and is working closely with them to ensure an orderly transition. Kodak will continue to honor all related product warranties, and provide technical support and service for its cameras, pocket video cameras and digital picture frames.
“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.
Upon completion of the phase out, Kodak expects to achieve annual operating savings of more than $100 million. Kodak expects to incur a charge related to separation benefits of approximately $30 million resulting from the exit of the business.
In addition to its Consumer Businesses segment, Kodak has a Commercial Businesses segment that includes the Digital and Functional Printing, Enterprise Services and Solutions, and Graphics, Entertainment and Commercial Films units. Kodak’s digital businesses now comprise approximately three-fourths of total revenues.
Kodak continues to have a strong position in the personal imaging market. While photos are increasingly taken on multi-function mobile devices, Kodak technology makes it easy for consumers to produce a broad range of photo products, anywhere, anytime – from prints to photobooks, photo greeting cards and personalized calendars. These items can be made on Kodak products, with Kodak quality at retail, at home, and ordered for delivery to home.
Kodak’s continuing consumer products and services will include:
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