Philips exits shrinking home entertainment business

[onehandle]

Source: Reuters

AMSTERDAM (Reuters) - Philips Electronics is selling its audio and video business to Japan's Funai Electric Co in a deal that almost completes its exit from consumer electronics to focus on more profitable home appliances and healthcare areas.

For many years, the Dutch company was a familiar household name in Europe thanks to its high-quality goods such as television sets, cassettes and CD players. But it has struggled to compete with lower-cost Asian manufacturers, including Samsung Electronics and LG Electronics, and has had to cut costs and sell assets over the last two years.

Philips had already hived off its ailing television business by setting up a joint venture with Hong Kong-based TPV last year. Now the sale of its audio and video operations for 150 million euros plus licence fees to Funai Electric takes the rest of the electronics out of the Philips name, apart from a small remote-control business.

With more consumers going online for music, films and games rather than buying CDs and DVDs, Philips decided to get out of home entertainment even though it was profitable last year, Chief Executive Frans van Houten said on Tuesday, adding that the business was shrinking and "margin dilutive".

Read more: http://en-maktoob.news.yahoo.com/philips-exits-shrinking-home-entertainment-business-100356863.html

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FYI: Philips released the first consumer CD player.

The days of removable media are waning.

I haven't bought a DVD or Blu-ray in almost three years and never rent them. I've bought just a handful of CDs. All of our movies/TV, and most of our music is delivered online.

Steve Jobs, back in 2008: “Blu-ray is just a bag of hurt.”

[MADem]

1. So, my Philips TV is an Edsel, now?

[mr_hat]

2. TV? I had a Nino, for all its 10 minutes of relevance. nt

[MADem]

4. Put it in the attic--it might buy a vacation for your grandkids!

Or at least get them fifteen minutes of fame on Antiques Roadshow!

[onehandle]

3. I bought a Panasonic TV last year. Now there is a rumor they may stop making TVs...

...and make 'screens' for Apple. Hmm...

So I might be in the same boat.

I bought a Panasonic, because they are cheaper than Samsung and Sony, and look much better than Samsungs.

[Xithras]

7. Panasonic plasmas are still have the best quality-to-dollar ratio of any TV on the market.

LED's still can't completely match the quality of a plasma, at double the price (they are very close, but plasmas still beat them on blacks). OLED's actually do offer better quality than the plasmas, but again we're looking at a price point double that of a plasma.

Sure, plasmas use more electricity, and they generate more heat, and they weigh more, but if quality is your goal, they're still at the top of the list.

That's why I'm bummed about the rumors of Panasonic folding their tv division. That will pretty much leave Samsung as the only major manufacturer of plasmas, and they're not exactly wedded to the technology.

[Spitfire of ATJ]

5. Phillips made a cheap DVD player that offered the DIVX format....

Made a great gift at only $40.

[musiclawyer]

6. I have a little sound bar

And subwoofer from Philips for my HDTV via optical cable. It's very nice and makes the TV sound much better

But I can see how this business is no longer volume and the margins they want will no longer be there

[mopinko]

8. they are making a boodle in medical devices.

it's insane. a cpap is as smart as the phone i had 10 years ago and goes for $1k.