Philips quits consumer electronics after 80+ years

By on January 30, 2013, 7:30 AM

Philips Electronics has decided to get out of the consumer electronics business as more than 80 years on the job. The Dutch company announced the sale of their audio, video, multimedia and accessories divisions to Japan’s Funai Electric Co. on Tuesday.

The decision to sell comes after Philips reported a steep net loss for the fourth quarter. The loss was largely in part to charges surrounding a restructuring effort as well as a fine for price fixing, according to the Wall Street Journal. We’re told that Funai Electric Co. picked up the assets for €150 million ($201.8 million) in cash and a brand-license fee.

Philips was once considered a pioneer in the field of consumer electronics. In the 1930s, they were the world’s largest supplier of radios. They invented the audio cassette in 1963 and created the first videocassette recorder in 1972. Just over a decade later they were responsible for creating the compact disc. They were also instrumental in the rise of DVD and Blu-ray formats.

As of late, however, the company has been unable to keep pace with the changing landscape as media continues to shift to digital formats. Philips CEO Frans van Houten told the WSJ that people do not buy Blu-ray and DVD players anymore since we have online entertainment.

Moving ahead, Philips plans to focus their attention on their medical business and lighting products, like the LED lighting and control system that is responsible for illuminating the Empire State Building in New York. The company will maintain their consumer product business that’s responsible for items such as coffee makers and shavers.




User Comments: 10

Got something to say? Post a comment
SCJake said:

"They invented the audio cassette in 1963 and created the first videocassette recorder in 1972. Just over a decade later they were responsible for creating the compact disc. They were also instrumental in the rise of DVD and Blu-ray formats."

SWEET!!! now maybe I wont have to spend $$$$$$$$$$$ to remake my collection... again... and again... and again...

Burty117 Burty117, TechSpot Chancellor, said:

SWEET!!! now maybe I wont have to spend $$$$$$$$$$$ to remake my collection... again... and again... and again...

Who said you HAVE to remake your collection?

VitalyT VitalyT said:

That's the way it has to be. Myself, I have had my collection of DVD-s and Blu-Rays tucked away in a shed for a while. Watching only digital contents now.

If Philips or others didn't see the change coming - it is expected they go belly up at this point... Even Sony isn't far behind, one leg in a grave, according to their financial picture, and if PS4 turns up another financial fiasco - they will follow Phillips.

p51d007 said:

Phillips should sue "the star wars guy", Lucas....take a look at the death star, and then take a look at the first AM radio I had as a 9 year old kid, the Panasonic ball radio.

[link]

Sure does look A LOT like the death star. Using the iPhone logic, they could sue Lucas for billions of dollars, and be home free LOL.

Skidmarksdeluxe Skidmarksdeluxe said:

It's a shame really but nothing lasts forever (take heed Apple). I still have a Philips valve radio & 78 rpm record player dating back to 1950.

1 person liked this | PaddyO said:

Pity - first (and only) midi HiFi from 1999 still going strong, still sounds great.

Skidmarksdeluxe Skidmarksdeluxe said:

Pity - first (and only) midi HiFi from 1999 still going strong, still sounds great.

Yeah, they did make some remarkable audio equipment.

captaincranky captaincranky, TechSpot Addict, said:

That's the way it has to be. Myself, I have had my collection of DVD-s and Blu-Rays tucked away in a shed for a while. Watching only digital contents now.
Smooth..! Now you can buy movies for a whole dollar less, which are still blocked up with DRM, you get no physical media, and you have to be online to use them. Very progressive!

VitalyT VitalyT said:

Smooth..! Now you can buy movies for a whole dollar less, which are still blocked up with DRM, you get no physical media, and you have to be online to use them. Very progressive!

Not really, never paid for a digital media, not once. I get them for free, where and how - you can guess, I won't go about it on a public forum

captaincranky captaincranky, TechSpot Addict, said:

Not really, never paid for a digital media, not once. I get them for free, where and how - you can guess, I won't go about it on a public forum
Oh, snap! Ahoy matey......,ARGH....!:eek:

Load all comments...

Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.