By Claire Reilly
Kodak has announced it will cease the manufacture and sale of digital cameras, pocket video cameras and digital picture frames in the first half of 2012 in an attempt to “rapidly improve profitability”.
Following the announcement that the American branch of the Eastman Kodak Company filed for Chapter 11 bankruptcy at the start of this year, Kodak chief marketing officer and president of consumer business, Pradeep Jotwani, said the move out of digital capture products was a necessary step for the company.
“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,” said Jotwani. “Today’s announcement is the logical extension of that process, given our analysis of the industry trends."
Following the company’s “strategic review process,” its focus will now be on Personal and Professional Imaging Products and Services including “online and retail-based photo printing, as well as wedding, school and souvenir photo imaging businesses – areas that offer the most significant opportunities for profitable growth”.
In addition to this, Kodak will continue its commercial business, which encompasses elements such as enterprise services and commercial film units, and accounts for approximately three quarters of total revenues.
“While the company will discontinue production in the first quarter, it will work closely with its retail partners to ensure an orderly transition, continuing to honour all warranties, and providing technical support and service for its cameras, pocket video cameras and digital picture frames.”
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Although production of digital cameras and video cameras will be phased out, Kodak Australasia MD Adrian Fleming said it was still “business as usual” for the local arm of the business.
“Kodak Australasia will continue to operate as usual, with our consumer business now focusing predominately on online and retail-based photo printing services,” said Fleming. “Our Commercial Printing Business continues to prosper and will be a large focus area for Kodak Australasia going forward.
“Kodak Australasia employees will not be impacted by this announcement and it is business as usual for Australia and New Zealand.”
Current.com.au has learned that Kodak Australasia will continue to honour warranties and provide technical support to consumers who have purchased Kodak products, as well as supporting its current retail partners through the transition.
More information is expected in the coming weeks, and Current will publish updates as soon as they become available.