The acquisition marks the latest move by Shutterfly to establish itself as the dominant source online for saving, sharing and publishing digital photos, cards and gifts. On Shutterfly, customers upload digital photos into their online album, order prints and turn them into Christmas cards, photo books, blankets and even iPhone cases. The online photo landscape has evolved since Shutterfly's early days, when it was launched to tap into the emerging popularity of digital cameras and photos. [...] not only do most consumers own digital cameras, but more than half of all U.S. cellphone subscribers also carry smartphones with cameras. Other startups are also nipping at its heels, such as Blurb, a San Francisco custom book publishing site, and Hipstamatic, a San Francisco mobile photo app that lets users order prints. In particular, he's taking aim at an estimated $35 billion market of the greeting card, stationery, calendar, scrapbooking and photo album industries.
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