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New Flip camcorder is high-def

The Flip camcorder, whose pint-sized frame, no-frills approach and small price tag made it a huge hit with consumers, is stepping up to the more rarefied world of high-definition
Image: Flip Mino HD
The new Flip Mino HD line of camcorders from Pure Digital Technologies take the company into new territory, featuring high-definition video. Pure Digital Technologies / Pure Digital Technologies
/ Source: Reuters

The Flip camcorder, whose pint-sized frame, no-frills approach and small price tag made it a huge hit with consumers, is stepping up to the more rarefied world of high-definition.

The new Flip Mino HD, was released Wednesday by Pure Digital Inc. The company has become something of an overnight sensation with the success of the Flip. The new Flip HD will sell for $230, making it a bit pricier than the standard-definition version that sells for $180.

But the consumer environment has changed considerably over the past few months. No. 1 U.S. electronics retailer Best Buy Co. said on Wednesday "seismic changes in consumer behavior have created the most difficult climate we've ever seen."

With recession-fearing shoppers holding tight to their purse strings, much of the electronics industry is approaching the holiday season with more than a touch of trepidation.

In addition, the market for small, inexpensive camcorders has gotten extremely crowded since the original Flip debuted in May 2007, including offerings from big names such as Sony and RCA.

But Jonathan Kaplan, Pure Digital's chief executive, says the Flip, which appeals to the budget-minded, has yet to feel the effects. And he expects the HD Flip, which he calls the world's smallest HD camcorder, to be popular with teens and early adopters.

He said the HD Flip stays true to the company's mantra of easy and affordable. Always concerned about so-called "feature-creep," Kaplan emphasized that the company was not interested in adding lots of bells and whistles.

"Saying that 'my camcorder is 1080p and has larger hard drive and its got a larger screen' — nobody cares about that. What they care about it capturing the everyday moments in their life."

Can record up to 60 minutes
Like its standard-definition cousin, the Flip HD is about the size of a wallet and weighs 3.3 ounces. It can record up to 60 minutes of video. A USB connector allows users to upload video to their computers and to sites like YouTube and MySpace. It can also be connected directly to a TV.

The Flip has been wildly popular, selling 1.5 million units. Pure Digital, with only 90 employees, holds a 24 percent share of the camcorder market.

While the pocket camera is popular in its niche, the new model's higher prices may make it buyers think twice when they compare it to a host of traditional stand-alone and video camera competitors.

For instance, consumers may opt to pay a lower price for digital cameras with standard video capabilities by the likes of Canon, Nikon and Eastman Kodak.

Or they could pay a little more for a full-featured video camera, by Samsung or Sony.

Kaplan won't release financial data for his privately held San Francisco-based company, but said annual sales are in the hundreds of millions of dollars.

He dismissed the competition as imitators rather than innovators. "It's flattering in some ways but also a bit surprising to see other companies coming out with products that are essentially the Flip."