Kodak Shutters Its Camera Business

Eastman Kodak says it is abandoning the camera business to concentrate on photo printing, desktop inkjet priting and brand licensing.  Kodak, which declared bankruptcy last month, said the move will save more than $100 million a year.

The fabled company has been making cameras since 1880 but its Kodak moment ended when it failed to move quickly enough into digital photography, allowing its film and film cameras business to languish while failing to build a dominant position with its digital cameras.

In general, consumers retain a warm spot for Kodak, according to a sentiment analysis of about 810,000 comments posted on social media sites over the last year.  Perhaps surprisingly, some of the most positive comments came from consumers who thought Kodak had invented the digital camera.  

Whether Kodak is able to build a dominant position in the inkjet business is yet to be seen.  Recent comments to ConsumerAffairs.com have been highly critical.

"I am able to make only 35 copies from a new cartridge. That is 30 cents a copy," said Marie of San Mateo, Calif. "I could go to Kinko and make perfect copies for 15 cents a copy. I called Kodak, but they are not interested."

Rob of California, meanwhile, is unhappy with his Kodak printer: "I bought a Kodak all-in-one printer and it has gone through many print carts. And I tried to ask the company for help and they hang up on me after talking to them for 10 minutes."

Right track

But try telling that to Kodak, which remains convinced it is on the right track. 

“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.   

The company said that, when the transition is complete, its 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," the company said.

Kodak said digital businesses now account for nearly three-fourths of its revenue. 

---

Sentiment analysis powered by NetBase