Kodak To Stop Selling Cameras To Cut Costs
Kodak, who recently filed for bankruptcy, has announced they will stop making digital cameras to cut costs.
Reuters is reporting that Kodak is also halting production of pocket video cameras and digital picture frames in the first half of 2012. Kodak announced that they were filing for bankruptcy last month after failing to adapt to modern technologies that it helped invent.
The company said on Thursday that it will take a charge of about $30 million for the business exit. It expects to save more than $100 million by cutting out manufacturing.
Kodak said that their choice was the “logical extension” of their strategy to improve margins by narrowing its product portfolio, geographies and retail outlets.
The company generated about three-quarters of its revenue from digital photography goods, but said that it will now pursue licensees to expand its brand licensing program. The company will still offer online and retail printing, and desktop printers.
Its remaining consumer services will include retail-based photo kiosks and dry lab systems. It has over 100,000 kiosks and dry lab systems around the world.
Kodak will also still operate its commercial business that offers enterprise services, graphics, entertainment and commercial film units.
The company is working closely with its retail partners to ensure a smooth transition out of the camera business. The company will still offer support and honor all warranties for their current cameras, pocket video cameras and digital picture frames that are currently on the market.