Eastman Kodak Company has officially pulled the plug on its role in the camera business, as it has revealed that it will be phasing out digital cameras, pocket video cameras, and digital picture frames in the first half of 2012.

"For some time, Kodak's strategy has been to improve margins in the capture device business by narrowing our participation in terms of product portfolio, geographies and retail outlets. Today's announcement is the logical extension of that process, given our analysis of the industry trends," says Pradeep Jotwani, President, Consumer Businesses, and Kodak Chief Marketing Officer.

Kodak has contacted its retail partners, and is working with them to ensure that an orderly transition takes place. Customers that own the affected products will still have access to the company's technical support service, and all related product warranties will be honoured.

Once the phase out is completed, Kodak says that it expects to achieve annual operating savings of more than US$100 million. The company also expects to incur a charge related to separation benefits of approximately US$30 million, resulting from the exit of the business.

Kodak will now focus on its current brand-licensing program, and seek out companies looking ascertain some of its patents. It will maintain a role in the online and retail-based photo printing realm, and will still offer consumer inkjet printers, photographic paper, camera accessories, and batteries.

Just last month, Kodak filed for bankruptcy protection.

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