H-P to Stop Developing Digital Cameras

SAN FRANCISCO -- Hewlett-Packard(HPQ Quote - Cramer on HPQ - Stock Picks) will cease developing its own digital cameras, as the company shifts resources to other initiatives.

The Palo Alto, Calif., tech giant said Wednesday that it will take a $30 million pretax charge in its fiscal fourth quarter as a result of its plan to seek an "alternative business model" for its H-P-branded cameras.

The company said it will continue selling its own digital cameras through the holiday season. In the first half of 2008, H-P hopes to have a deal in place with a manufacturing partner to design, source and distribute digital cameras under the H-P brand.

The company said in a statement, "This shift in strategy is intended to enable H-P to accelerate its investment in Print 2.0 initiatives." These included furthering H-P's leadership position in home photo printing and online photo services, while accelerating the company's retail photo-finishing business.

Shares of H-P closed Wednesday off 2.9% to $51.84.