Foxconn Electronics (Hon Hai Precision Industry) and Chicony Electronics, which are the OEM partners for the Flip video camera, may see their orders affected if Cisco decides to discontinue the product line, according to sources from upstream component players.

Cisco announced that the company will close down its Flip business and support its clients that are still using Flipshare software with a transitional plan, while some reports already stated that the company is laying off the 550 employees of Flip.

As for the response from upstream partners, Foxconn declined to comment about its clients, while Chicony pointed out that the company is still trying to understand the details and has not yet received a firm confirmation. However, the sources pointed out that Cisco will soon send executives to Taiwan to discuss with its OEM partners its later plans.