Apple Thoughts: Maybe Less Relevant, But Not Irrelevant

"As successful as Pure Digital has been with their Flip line of video cameras - selling $150 million worth of them last year - they face a new type of threat that they can't defeat. The video capable iPhone, and video mobile phones in general, will make them irrelevant in the next couple of years."

Mike Arrington has a way of making things sensational even when they're not really that big a deal. That's not to say the iPhone isn't a big deal, but the idea that it's going to start satisfying the market for the Flip cameras is a little silly. They satisfy different niches, and the Flip is good for people who don't want to commit to an iPhone or a monthly plan. At $189, you get very good video quality with no strings attached with a Flip cam.

You can logically argue that the quality is comparable between the Flip and an iPhone 3Gs, but comparable quality alone isn't going to steal market share away from a product that, at its core, is popular because it's easy. I don't think the Flip will suddenly be rendered irrelevant, but its relevancy will probably decrease among the crowd that owns an iPhone and wants quick videos for web purposes, but that by itself in no way renders the Flip irrelevant.