HP to Leave Digital Camera Market

By Michael Santo
Executive Editor, RealTechNews

HP has decided to exit the digital camera market. It is looking to find an OEM partner to produce HP-branded cameras, but will no longer produce its own after the first half of 2008.

Three years ago, Hewlett-Packard announced it would revamp its digital camera lineup and invest $1 billion in research and development over 18 months to become a leading vendor. In a stunning about-face today, HP announced that it is now seeking an outside OEM to design and distribute HP branded digital cameras.

The company will continue to sell its own models through the holiday season, and then cease in the first half of 2008, when a partnership is intended to be in place. The company that will take over production has not yet been determined. Source: BetaNews

We Say: Despite its attempt to reinvigorate its digital camera sales with its revamped lineup, HP’s camera market share has actually dropped, from #3 in 2001 to #8 now. No sense throwing good money after bad, I guess.