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Print 14 comment(s) - last by theapparition.. on Jan 31 at 9:47 AM


  (Source: techburgher.com)
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 mobile devices and televisions.

“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 lighting sectors. 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.






Source: The Wall Street Journal



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I hate that
By theapparition on 1/29/2013 2:00:55 PM , Rating: 4
So Philips will still be sold in the consumer segment, only they won't have anything to do with Philips anymore.

That's like selling RCA products when RCA has nothing to do with the product anymore. At least when IBM sold off the PC line to Lenovo, they didn't keep branding them as IBMs.

Dang brand engineering.




RE: I hate that
By Soulkeeper on 1/29/2013 7:36:45 PM , Rating: 2
Last I checked the french owned RCA
They aren't the RCA of yesteryear either.

I guess philips just hung on a little longer :/


RE: I hate that
By theapparition on 1/30/2013 9:38:29 AM , Rating: 2
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
By Motoman on 1/30/2013 10:46:59 AM , Rating: 2
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
By theapparition on 1/31/2013 9:47:18 AM , Rating: 2
Agree completely.

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.


RE: I hate that
By zephyrprime on 1/30/2013 12:10:26 PM , Rating: 2
They did keep selling them under the IBM name for several years. I expect the same will be done with philips.


$200 lightbulbs?
By DT_Reader on 1/29/2013 3:17:35 PM , Rating: 3
The company that invented the cassette tape and co-invented the CD is now in the business of making $200 lightbulbs.

And they wonder why business is bad.




RE: $200 lightbulbs?
By JediJeb on 1/29/2013 7:28:13 PM , Rating: 3
While it is expensive, nobody else is making a color changing LED bulb currently. New tech is almost always expensive when first introduced and I would bet that when the original light bulb was introduced it was very expensive as well. Like anything else in electronics price will drop as the tech matures and sales increase.


RE: $200 lightbulbs?
By Samus on 1/29/2013 9:17:48 PM , Rating: 2
Most of their profit is in medical technology. My daughters' Avent feeding bottles sure aren't cheap, but they're very good quality and essentially haven't changed in design since 1984.


Good Riddance....
By rdhood on 1/29/2013 1:58:01 PM , Rating: 1
Philips has been turning out electronics junk for the better part of the last 10 years. They need to stick to their core competencies ... and consumer electronics is not one of them.




RE: Good Riddance....
By Samus on 1/29/2013 2:17:11 PM , Rating: 2
I agree, Philips hasn't made a solid CE product in a long time. I lost faith in them entirely after my Ambilight LCD TV had two recalls.


RE: Good Riddance....
By euclidean on 1/30/2013 8:38:42 AM , Rating: 2
I would have to disagree, at least on 1 side of the CE market from Phillips:

http://www.amazon.com/gp/product/B005HY4UPK/ref=oh...

With all of the options out there to have an iPhone dock, this was probably one of the BEST purchases I have ever made for an Android dock. The Sound quality is great (not the greatest...just really, really good for the size and cost) and all of our Android devices work great with it - especially since you can rotate and slide the connector into the position that you need.


untrue.
By chromal on 1/29/2013 4:46:47 PM , Rating: 2
Last time I checked, the LED lighting products Philips is selling to consumers are indeed "electronic," and so it's a bit misleading to announce Philips has pulled out of consumer electronics.




For the record
By Motoman on 1/30/2013 10:50:20 AM , Rating: 2
...I was kind of a big fan of Philips sound cards, back in the day. Great performance at a great price. I was particularly fond of the Acoustic Edge...during the era when a 5.1 sound card was king (i.e. before 7.1), I still think the Acoustic Edge was probably the best 5.1 card ever made...aside from whatever prosumer audiophile stuff there might have been.




"I want people to see my movies in the best formats possible. For [Paramount] to deny people who have Blu-ray sucks!" -- Movie Director Michael Bay














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