Philips getting out of TV market

[Smokey]

Philips has taken its first step towards withdrawing from the TV market by divesting 70% of its television arm into a joint venture with a Chinese manufacturer. The deal was announced as the Dutch corporation reported a 31% decline in net profit for the first quarter of 2011, largely due to continuing losses that plague its TV business.

Under the agreement, the majority of Philips’ TV division will be taken over by TPV Technology, a TFT-LCD monitor and LCD TV maker which is based in Hong Kong. Philips will retain a 30% stake in the joint venture – essentially relinquishing control of the operation to TPV.

The venture will continue to produce televisions under the Philips brand for at least five years, and after six years Philips has the right to sell the rest of its stake to its partner.

Philips have not been doing well in the fiercely competitive HDTV market of late. Its TV business posted a loss of 106 million Euros (around £93 million) before interest, taxes and amortisation, perpetuating a trend of flagging sales and declining profits.

http://www.engadget.com/2011/04/18/philips-sells-hdtv-business-to-hong-kong-based-tpv-technology-w/

[Ajani]

Philips has sought to clarify its position:


Philips has hit back at suggestions that its TV business is at an end – claims that sprang from the news that it's entering into a joint-venture agreement with a Chinese flatscreen manufacturer, as we reported earlier this week.

"The buzzword is continuity" said a spokesperson for Philips UK, "Anyone working on developing Philips TVs now will go across and work for the new joint-venture company from 2012."

So while Philips will have no longer have its own TV division, the staff and resources currently involved will be rolled into the new venture from January 2012. No redundancies are planned.

"There will be a continued UK focus and UK team for Philips TVs – it's going to be business as usual", they added.

Philips stressed that this is a joint venture with Chinese manufacturer, TPV, not – as earlier reports suggested – just a licensing agreement where only the brand name would remain the same.

"Our TV brand is way too important in the UK – and beyond – to risk compromising it in any way, " the Philips spokesperson explained. "This is simply a deal that will make us more competitive in the global TV market".

The joint-venture company will start working on products in 2012, based on research and development already underway at Philips.

The move should result in a broader range of Philips TVs, but the company's commitment to premium products and technologies – including 21:9 and Ambilight – remains strong.


http://www.whathifi.com/news/philips-clarifies-the-future-of-its-tv-division-its-business-as-usual

[Smokey]

That are just trying to save face.

The Philips spokesperson said, "Our TV brand is way too important in the UK – and beyond – to risk compromising it in any way, "

Well, their name brand is alreaday tarnished in U.S TV market by outsourcing their TV to Japanes company Funai for N. America market. Europe market soon to follow :)

[pixelthis]

THE first of many.
Most of the monitor market is commodity, with a higher tier for the enthusiast.
Companies like PHILLIPS that can't compete with higher end names and don't have
the volume had best run, not walk, from the monitor dept.:1:

[Nasir]

It may not necessarily be a BAD thing, for I too once worked for Philips and then the our division got sold off,,,, and we are still here and going strong!!

Sometimes a different approach adopted by the new owners can revitalize a company...

For me, the Philips LCD and LED TVs have been the best when it comes to handling motion. Other innovations include better sound ( in the recent models ),mostly matte screens ( while others insist on reflective ones ), Ambilight ( one either hates it or loves it ) and their awesome 21:9 cinema screen which I absolutely adore.

I for one would wait a long while before considering them dead and buried after all their original staff will be transferred as well.

[Smokey]

Companies like PHILLIPS that can't compete with higher end names and don't have the volume had best run, not walk, from the monitor dept.:1:

I think Vizio may also got something to do with companies like Philips throwing in the towel. They could not match perfomance vs price that Vizio offered.


I for one would wait a long while before considering them dead and buried after all their original staff will be transferred as well.

Time will definitely tell. Meanwhile, I wonder what they are going to do with their N. America division. Is Funai is still going to running it, or will TPV Technology take it over.

[pixelthis]

I think Vizio may also got something to do with companies like Philips throwing in the towel. They could not match perfomance vs price that Vizio offered.

Which goes to show the strength of VIZIOS production model, no matter how much
some on this board complained about it

[QUOTE]Time will definitely tell. Meanwhile, I wonder what they are going to do with their N. America division. Is Funai is still going to running it, or will TPV Technology take it over.

FOLD the whole thing up, probably. PROBABLY make a few bucks selling intel, etc.
But with most modern companies most physical plant is leased, the employees
that are not temps will find jobs readily enough. Most likely they will evaporate
like a drop of water in death valley.

THE SILVER LINING is the great bargains to be found in closeout sales, maybe
time for SMOKE to pull the trigger, eh?:1:

[Nasir]

What IS going on?

SONY too seem to be going the way Philips did.....

This pretty much leaves SAMSUNG ,LG, Panasonic and really not much more....

I am going to grab me some bargains!!!

[pixelthis]

What IS going on?

SONY too seem to be going the way Philips did.....

This pretty much leaves SAMSUNG ,LG, Panasonic and really not much more....

I am going to grab me some bargains!!!

And be kicking yourself in the head in a few years.
Basically, panels have achieved "commodity" status(or pretty near). This means
that the vast majority of panels out there will be cheap, mass produced, and
disposable, pretty much like all electronics that reach a certain point of
production.
There will always be "high" end models for those who really care about quality, tho.
THIS IS why plasma is doomed, why PIONEER got out of the plasma market.
YOU CAN'T get the economies of scale with plasma that you can with LCD.
As for "names", they will mostly be selling the same sets, with a different brand
on each.
THE GOOD NEWS is that decent HD will be available at a good price, maybe even Smoky will buy one.:1:

[Smokey]

THE GOOD NEWS is that decent HD will be available at a good price, maybe even Smoky will buy one.:1:

Well, finally broke down and bought one. Details coming soon :)

[pixelthis]

Well, finally broke down and bought one. Details coming soon :)

Thats great, smoke. HOPE you got an inexpensive BLU player to go with it.
When DVD came along, it was a huge advance, but nothing beats HD,
especially for us older types who watch more.
EVEN STUFF like weather channel, shopping channels, business channels.
THEY DON'T JUST increase the resolution, most actually get creative with graphics.
AMAZING what a 16:9 pic looks like on the weather channel, or a business channel.
Movies are just one aspect of it.
GLAD you finally pulled the cord, think you will love it.:1:

[pixelthis]

AND IT WOULD be sad to see PHILLIPS go. A lot tend to think these panels
are interchangeable, but a friend likes his PHILLIPS more than his SAMSUNG,
and the picture is quite good. But, sadly, sometimes how good you do doesn't matter in the marketplace.:1:

[bobsticks]

AND IT WOULD be sad to see PHILLIPS go. A lot tend to think these panels
are interchangeable, but a friend likes his PHILLIPS more than his SAMSUNG,
and the picture is quite good. But, sadly, sometimes how good you do doesn't matter in the marketplace.:1:

It must not work that well if it's a failure.

[pixelthis]

It must not work that well if it's a failure.

I could sit here all day and list great tech achievements that flopped in the
marketplace.
I HAVE DVDA'S that were authored at ridiculously high rates, like 192k, SACD
also, both are considered failures in spite of being state of the art.
And then theres' LASERDISC, MINIDISC, DAT...:1: