Philips Departs Consumer Electronics Market
January 29, 2013 1:11 PM
comment(s) - last by
It will focus on health and lighting products
Philips Electronics said it's leaving the consumer electronics market after facing consecutive losses and failing to keep up with competitors.
Philips sold its audio, video, accessories and multimedia business to Japanese company Funai Electric Co. for $201.8 million USD. It was paid in cash and a brand-license fee.
Philips was once a big player in the consumer electronics ring. It was the biggest suppliers of radios in the 1930s, the inventor of the audio cassette in the 1960s, created the first videocassette player in the 1970s and released the compact disc in the 1980s.
However, we've moved into an era of digital, streaming entertainment and Philips just can't keep up. The company has had a hard time competing with the likes of Apple and Samsung when it comes to consumer electronics like
“Our consumer lifestyle business was margin dilutive to the group, so it was time to decide to move away from consumer electronics,” said Frans van Houten, Philips’s CEO.
“Since we have online entertainment, people do not buy Blu-ray and DVD players anymore."
For Q4 2012, Philips' net loss was €358 million ($482 million USD) compared to a loss of €162 million ($218 million USD) in Q4 2011. The company had to take a restructuring charge of €380 million ($512 million USD) as well as a €509 million ($685 million USD) for a fine related to European television market manipulation in the 1990s.
However, Philips is doing quite well in the medical equipment and
. For Q4 2012, health care order intake increased 4 percent while lighting also grew 4 percent.
Last October, Philips introduced
"Hue" LED bulbs
that offer limitless colors and can be controlled from an iPhone. A starter kit with three bulbs starts at $199.
Philips' 2013 goals include a 4 to 6 percent revenue growth and a 10 to 12 percent margin for earnings before tax, interest and amortization. By 2014, the company hopes to have a savings of €1.1 billion. At the end of 2012, Philips had €471 million saved.
The Wall Street Journal
This article is over a month old, voting and posting comments is disabled
RE: I hate that
1/30/2013 9:38:29 AM
RCA as a company was sold to GE who also spun off the consumer branding of RCA to Thompson Electronic.
But the industrial/government side of RCA's business went to GE, then Martin Marietta, then to Lockheed Martin.
Who/where the consumer brand "RCA" is now I have no idea and don't feel like looking it up. It's quite possible some French owned company has the rights to distribute products under the RCA name. But it's sure not RCA anymore, which I hate.
Exactly like the Philips name and countless other brands. You think you are buying a brand with some history and perceived quality when you are not. In reality, the product could be made by a Chinese sweatshop opened last week with zero quality that is contracted by an anonymous company who just so happens to own the rights to the brand name.
RE: I hate that
1/30/2013 10:46:59 AM
Welcome to the real world. It's been a long time since many "old" brands made their own products. At least, all of their own products.
Go to Target and see LCD TVs branded Polaroid, Westinghouse, Emerson, whatever...those companies have no facilities at all to actually make such things. I'm not sure they have any facilities of their own at all anymore, come to think of it.
But, there's value in the brand name if nothing else, which is why people will continue to purchase products thusly branded. If you saw 2 identical TVs at the store, one at $400 branded ChongQing and one at $500 branded Polaroid, you're fairly likely to splurge the extra $100 for the Polaroid name - even if both TVs literally rolled off the same assembly line.
Which is why, when shopping for such things, I tell people that if money is an object then just pick out the TV you want based on it's features and price. If you've got unlimited funds, then sure - go buy the super-high-end stuff that Sony etc. are making. Otherwise...don't even pay any attention to the brand name.
RE: I hate that
1/31/2013 9:47:18 AM
You and I both know how these things work. But average consumers don't, and think they are getting something of higher perceived quality than it really is.
"I'm an Internet expert too. It's all right to wire the industrial zone only, but there are many problems if other regions of the North are wired." -- North Korean Supreme Commander Kim Jong-il
Fifth Generation iPad Back Plate Pictures Leak
January 29, 2013, 12:27 PM
Philips "Hue" LED Bulb Offers Limitless Colors, Can be Controlled from Your iPhone
October 29, 2012, 10:05 AM
Philips Wins $10M USD Gov't L-Prize for World's Most Efficient Light Bulb
February 27, 2012, 10:54 AM
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Leak: Apple Preps for First Real Android App Foray With New Apple Music App
October 24, 2015, 1:59 PM
Pepsi Smartphone? Empty Calories Coming Soon to the Midrange
October 12, 2015, 11:41 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information