Let's face it, Cisco is just ahead of the market
I know it’s kind of weird that Cisco is about to kill a still flourishing business that was once an example of an innovative product, but as sad it may seem when looking at it right now, Flip is doomed to fail in a market that is more and more dominated by smart phones that do the same but just better. In the same way you can expect Apple to discontinue its iPod Classic, as there is no longer a mass market.
As bad as it seems for all the folks at Flip, there is not much they can do about with a product portfolio that is solely relying on one single product that after a short period of success becomes superfluous …