Cisco announced today that it is shuttering its Flip Video camcorder division as the company shifts its focus towards it networking business.

The home networking business is an area where the company is more established and far more profitable. We are making key, targeted moves as we align operations in support of our network-centric platform strategy, said Cisco CEO John Chambers in a statement. 

Cisco purchased Pure Digital Technologies, the creator of the Flip Video camcorder in 2009 for $590 million. But the decision to axe the device should come as no surprise. While the Flip's initial appeal as a low-cost video recorder might have turned heads back in 2009, the device's functionality has since been replicated, and in most cases, improved on by nearly every smartphone available today.

Unlike most smartphones, the Flip is unable to connect directly to video sharing services like YouTube, making it obsolete in comparison to devices like the iPhone.

Cisco's decision to shutter its Flip Video camera business will result in 550 Cisco employees losing their jobs.