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Kodak Leaving Digital Camera Business

Kodak announced that 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.

Press release from the Eastman Kodak Company:

ROCHESTER, NY -- Eastman Kodak Company announced 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:  

  • Retail-basedphoto kiosks and digital dry lab systems, a market in which Kodak is theclear worldwide leader. Kodak pioneered the retail-based kiosk market, andthe company now has more than 100,000 kiosks and order stations for drylab systems around the world, with some 30,000 of those units connected tothe most popular photo-sharing sites.  
  • Consumerinkjet printers, where Kodak has outpaced overall market growth forseveral years. Kodak consumer inkjet printers provide consumers withhigh-quality output and the lowest total ink replacement cost. Consumerscan send documents and photos to Kodak printers from anywhere, using anyweb-connected device.  
  • Kodakapps for Facebook, which make it easy for consumers to obtain photoproducts using photos from their Facebook albums.  
  • KodakGallery (,a leading online digital photo products service. Kodak Gallery enablesconsumers to share their photos, and offers product and creation toolsthat enable people to do more with their photos.  
  • TheKodak camera accessories and batteries businesses. These products areuniversally compatible with all camera brands, and extend into otherconsumer product segments such as charging units for smartphones.  
  • Thetraditional film capture and photographic paper business, which continuesto provide high-quality and innovative products and solutions toconsumers, photographers, retailers, photofinishers and professionallabs. 
Jennifer Wolfe's picture

Formerly Editor-in-Chief of Animation World Network, Jennifer Wolfe has worked in the Media & Entertainment industry as a writer and PR professional since 2003.