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-   -   Philips CEO switches off TV in search for profit (http://www.avsforum.com/forum/92-community-news-polls/1329643-philips-ceo-switches-off-tv-search-profit.html)

Bob Hetherington 04-18-2011 03:27 PM

Philips CEO switches off TV in search for profit

Philips is moving its loss-making TV business to a 30/70 joint venture with Hong-Kong based monitor maker TPV and has the option to sell out. The Dutch group has struggled to compete against players like Samsung and LG Electronics. Van Houten, a restructuring expert who took over as CEO this month, said on Monday he is assessing the profitability of Philips' 400 or so business areas, a hint that further divestments could be on the cards. "We are not yet firing on all cylinders...There's much unlocked potential in Philips," Van Houten told Reuters Insider. Philips' shares opened lower on the news, but then recovered to trade up 0.9 percent at 10:29 a.m.. Philips has 3,600 employees at the business, all of whom will be transferred to TPV. It did not give a value for the deal, saying it would receive a deferred payment from TPV. Philips showed its first television to the Dutch public in 1928 -- a bulky box-like contraption that was a far cry from its current sleek, flatscreen models. But Philips, once a global leader in TVs, can no longer compete with lower-cost rivals. The unit, which makes up less than 10 percent of group sales, has become a thorn in the firm's side, having notched up losses of almost a billion euros since the beginning of 2007. Van Houten said the joint venture "will enable a return to profitability for the television business, and an increased portfolio focus for Philips in health and well-being."

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wilbur_the_goose 04-19-2011 10:53 AM

Looks like Philips is abandoning ship. First Pronto, now TVs. Wonder what's next.

jimmyv2000 04-19-2011 11:57 AM

i wonder what this means if people like myself have a TV still under warranty

lsilvest 04-19-2011 12:32 PM

Sad to hear. I've had a Philips plasma for 5 years with a great picture and no problems. Their customer service is excellent and easy to reach. I have a number of Philips products and have always had good luck with them. Too bad we have to lose quality companies.

paulw2 04-19-2011 01:42 PM

A couple of years ago Philips found it too hard in the business PBX area and sold it to NEC..
Guess this is just a continuing pattern. Maybe they will vanish soon like RCA and will be rebranded stuff from China..

Paul.R.S 04-20-2011 01:44 PM

Wow--from being a TV leader, owning PolyGram Records and doing hundreds of strong classical CD releases during the heyday of that format under their Philips Digital Classics imprint to . . . a shadow of its former self. But with some 400 business areas, it definitely sounds like some consolidation is in order.

michaelp95 04-21-2011 01:42 PM

Originally Posted by paulw2 View Post

A couple of years ago Philips found it too hard in the business PBX area and sold it to NEC..
Guess this is just a continuing pattern. Maybe they will vanish soon like RCA and will be rebranded stuff from China..

All their TVs sold in North America the last few years have been made by Funai with their name on the device, so that is already happening.

mtbdudex 04-21-2011 04:42 PM

My 1st stereo "hi-fi" in 1985 was a Philips unit......
My 1st DVD player a Philips unit.....

RIP Philips TV division.

BlueBeetle 04-21-2011 06:47 PM

This is really sad. I love my Philips 47 inch PFL6704D HDTV. For some reason I've alway been attracted to Philips gear. They usually have a certain style that I like.

rene2kx 04-24-2011 10:58 AM

My current new 3d tv is the philips 9705h led lcd tv and it is brilliant (dcr 10 million:1). I found it had a better picture than comparative sony or samsung models i saw. And when it comes to integrated tv speakers, you cant beat philips. My model, as usual, has excellent sound just as the previous philips lcd's i have.

America though does not see true philips technology now. Philips sold their business to Funai , so all televisions with the brand name philips are actually manafactured by funai in america and do not represent true philips quality.
The tv i have is a 'true' philips 3d tv -the 9000 series which is among their best series.

Some people are reading this news wrongly. They are not selling their tv business. They are entering into a partnership with an HK firm as their tv business has seen losses over past few years. Once they recoup losses, they'll bank out of this patnership deal and back to manafacturing their own tv's. This is just a temporary collabration, not anything permanent.

I also feel sad when americans, who don't get the best technology philips manufactures, bash the brand. Americans never got to see the 'true' philips. Many americans are also not aware of the fact that the norelco electric shavers they have been using for years are nothing but philips. They were sold in north america under the brand name norelco.

PS- i love the perfect pixel hd engine and the ambilight feature in my philips 3d tv . I switch off all the room lights when using ambilight and put on my glasses. It gives a more 'cinema' feel.
Perfect pixel hd engine is a beast . It also plays standard def content better than any brand i've seen.
IMO, philips marketing has never been good, educating people about their products like sony or samsung because the quality was always there.

My one fond memory of childhood is when philips unveiled to the world, for the first time, the Compact Disc in 1979. That's right , the physical form of the CD was made by philips. In 1980, they went to japan and involved sony in the cd format. World's first electric shaver also manufactured by philips. World's first cinema proportion hdtv (21:9 ratio) made by philips too.

rene2kx 04-24-2011 11:55 AM

Originally Posted by mtbdudex View Post

RIP Philips TV division.

the tv division is not closing down. did you read the article carefully? they are entering into a joint venture with a hk based firm so they can recoup losses incurred in their tv division in the past few years. Philips also went into a venture with lg once but eventually they drew out.

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