Hazy Picture At Polaroid

It still must figure out how to make the transition to digital cameras

Last year, Polaroid Corp. (PRD) finally broke out of its long stupor. In a brilliant stroke, it developed the $25 I-Zone instant camera that produces stamp-size sticker prints and became a runaway hit with the teenybopper crowd. Kids used the tiny pictures to decorate everything from their lockers to their clothes, and adults discovered uses for the sticky pics that Polaroid never imagined, such as affixing photos of their shoes to shoeboxes. The I-Zone quickly became the world's best-selling camera, in terms of units, and helped Polaroid finish in the black for the first time in five years.

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