Apple Wants Cisco's Flip Video Market (AAPL, CSCO)

Generally speaking, success and intrigue in a new hot market brings on competition.  It seemed to be a bit of an odd merger to many when Cisco Systems, Inc. (NASDAQ: CSCO) acquired the private company called Pure Digital Technologies, the maker of the popular Flip Video™ cameras.  But a new iPod nano product from Apple Inc. (NASDAQ: AAPL) is going to possibly take this head-to-head against the Flip.  As Apple’s version is being inside an iPod nano, this is an expanded version while the Flip is a standalone instant plug-in device to upload videos.

The new iPod nano(R) is adding a video camera, mic and speaker to the popular music player. The new iPod nano features an ultra-thin design with a larger 2.2-inch color display and polished aluminum and glass enclosure with a built-in FM radio with live pause and iTunes(R) Tagging and even a built-in pedometer. The new iPod nano is available today in an 8GB model for $149 and a 16GB model for $179, and comes in nine colors: silver, black, purple, blue, green, orange, yellow, (PRODUCT) RED and pink.

The Flip now comes in many more colors and designs that originally, and you can buy the Flip Mino HD for $199.99, the Flip Mino for $149.99, the Flip Ultra HD for $199.99, or the Flip Ultra at $149.99.  The Ultra Flip size is almost 2.2 inches wide, 4.25 inches tall and 1.17 inches thick.

As far as Cisco is concerned, this acquisition takes Cisco’s consumer business up a notch as it develops new video capabilities for the next generation of entertainment and communication experiences.  But it could end up being far more as well as this can be a mobile camera that may in future generations become the platform for a portable version of its Telepresence operations.

Apple noted that music lovers can now shoot video wherever they are, view it on their iPod nano and use their computers to easily transfer their videos to YouTube.

Whether you need or want your video camera and that battery unified with your music is probably a preference.  If you have large hands and look at the image above, the bet is likely that you won’t want these unified.

JON C. OGG
SEPTEMBER 9, 2009