The Flip camera was a nice invention. Small, compact, and good sized hard drive. The only problem was smartphones came out with the same, if not better resolution and pricing. Plus, are you really going to lug your Flip if your iPhone or Android phone has the same capability?
These reasons and the fact that Cisco had slim margins on these products are why the Flip products will no longer be sold. Cisco is trying to save face by defending its product pull as a step to only offer higher scale computer networking products. Well, definitely a noteable defense, but not a good way to go out as one of the leading technology support provider.
Cisco will be delving more into the semiconductor market, specifically, integrating network switches, routers, and appliances into computer networks. That does actually make more sense as that was their bread and butter for decades until their road bump with the Flip Camera. Yes, the Flip Camera was great, but Cisco really never took it to the next level or integrated it with other functionalities to make it something we can grow with. Instead, it never seemed to keep up with the pace of technology; hence, the reason why the Flip has now fallen by the wayside.