Wednesday, January 14

Can You Picture That?

Kodak announced that it will stop selling traditional cameras (one time use cameras will still be sold) in the United States. I'm a big fan of digital cameras (and finally got my wife one for Christmas), but even I am stunned at the swiftness of this type of consumer shift. I guess my reaction stems from working in the home video business and seeing the slower takeover of the DVD. Of course, with video, customers have amassed a huge inventory of movies and such that makes the need for VCR's more necessary. Still, now that DVD recorders are coming down in price, I see the end of the VCR in sight.

The story reports that camera sales were always low profit for the company and that film and accessories were the real profit makers. How will this play out with the digital camera? What will be the profit center then?

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