Cameras out of the picture for Kodak

The company that gave the world the tagline, ‘Kodak moment,’ will this year farewell its dedicated capture device business, which includes its entire range of digital cameras, pocket video cameras and digital picture frames.

In a move that ends the company’s 124 year-history of camera production, the Eastman Kodak Company this week announced it would phase out its capture device business within the first half of this year to focus on building its brand licensing program, which will see it seek licensees in the digital camera, pocket video and digital picture frame categories.

“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,” says Kodak’s president of consumer business and CMO, Pradeep Jotwani (pictured). “[This] announcement is the logical extension of that process, given our analysis of the industry trends.”

The company has said that, once the phase out process is complete, it expects to achieve annual operating savings of more than $100 million, and that it expects to incur a charge related to separation benefits of around $30 million, resulting from the exit of the business.

The move to phase out its dedicated capture device business allows Kodak to further focus on its more profitable businesses, including its Commercial Segment, which produces machinery and equipment for the graphic arts and printing industry. In January, Kodak US filed for voluntary bankruptcy to help free up funds to further invest in these areas of the business.

The company says that, although it is abandoning its capture device business, it will continue providing consumer products and support in its retail-based photo kiosk and dry lab businesses, consumer inkjet printers, film and photographic paper business, and its online and offline image software.