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/p...-technology-w/