[dvdhsu]

That was my first question as well.

I think Flip was unlucky in that their releases coincided with the rise of smartphones, which took their lunch. When one device just takes video and costs around as much as an subsidized smartphone, there isn't any question which one I'm going to pick.

GoPro, though, wasn't hurt by the rise of smartphones. Surfers won't use smartphones for footage; they'll use the GoPro, since it's waterproof, has anti-shake, and other inportant features, targeted specifically at surfers.

Perhaps the moral is: when the rest of your industry is declining, focus on a niche, and execute well.