Camcorders, falling prey to ‘Disruptive Innovation’
Several products and services in the technology world have fallen and perished due to Disruptive Innovation, a concept which gives birth to a new and innovative product or service virtually killing an existing product or service. To name a few of products we have the infamous instance of walkmans being disrupted by iPods and other portable MP3 players; also one such computer hardware component which vanished was the floppy disk which went with every personal computer that was manufactured during the 90s, and was replaced by the CD drive; in turn the CD/ DVD drives are being replaced by USB drives. So, essentially every technological product eventually dies out as and when a break-through innovation takes place disrupting the existing product’s fate. Hence the term Disruptive Innovation.
Camcorders face the brunt
In conjunction with what is explained above, it could be comprehended that the next product that could be disrupted is the camcorder. What are the products that are actually disrupting a product that is as innovative as camcorders? From tablets to smartphones to DSLRs to almost any digital product that has a display screen on it features a HD video capture. A standalone camera could be perceived as useless when compared to these devices considering the other features that they offer.
Cisco’s Flip side to the camcorder fiasco
[ad#ga-cbox-left]Cisco’s sudden decision of pulling the plug on its Flip digital video camera has made it even more obvious that camcorders are truly not enjoying good sales and market share as compared to other digital gadgets. As much US$590 million was spent by Cisco to buy Pure Digital, the makers of the Flip videocam, less than two years ago. With a brand new idea conceived for the FlipLive, the announcement of pulling back the brand Flip itself comes as quite a big surprise. FlipLive was supposedly going to feature live video streaming from camera to web via WiFi.
The reasons for this decision are quite simple: one the dying demand for camcorders and two Cisco has never been comfortable selling products to the end consumers. It is just not their forte and the decision would help them focus attention back on their core products and services like networking. Speaking on the same Carl Howe, director of anywhere consumer research at the Yankee Group said, “The big issue with Cisco was that it wasn’t really a consumer products company and still isn’t and as such didn’t have the stomach for the types of marketing, advertising and customer service necessary to make a consumer product successful“.
Cisco’s decision, a deadly sign for camcorders
Cisco’s decision to drop its camcorder products partnered with some intense competition from gadgets like smartphones, tablets, pocket digicams and DSLRs that come equipped with digital video capabilities, it seems as though camcorders could face the decline stage of its lifecycle soon.
Relief from large markets
Some huge markets like the United States still showcase demand for camcorders and the statistics suggest that at least 22 percent growth of camcorder sales is expected across the global. Having said that, the growth expected could also take a hit due to the emergence of other more technically sound gadgets.
All we can do is just wait and watch.