Why Philips left from the market of consumer electronics?

Why Philips left from the market of consumer electronics?

In the history of development of the user electronics there are two producers who spent more time for a justification of existence of own products, than for attempt to keep up to date. It is Nokia and BlackBerry. Philips put an end in the history absolutely meaningly. What happened?

On Tuesday it became known that Philips sold the remains of the there is no time the main business of Japanese Funai Electric. On the Dutch company losses for the fourth quarter, expenses on restructuring and a penalty for fixation of the prices pulled hard. Now Philips any more does not make audio-, video and multimedia accessories, having left itself only medical equipment and lighting devices. If not all this, the price which was paid by Japanese, could suggest an idea about raiding: 150 million euros and payment for brand licensing.

This step put an end in the history of 80 years innovative, but over time more and more dim development in the sphere of household electronics, the industry.

In 1930 of Philips was the world’s largest supplier of radio equipment. The Dutch company invented audiocassettes in 1963, the first videorecorder in 1972, and to compact discs came in 1983. In 1970 of Philips lost legendary fight to a Japanese standard of videotapes of VHS, and since 1980 falling in an abyss, which name the Internet began.

Despite continuous recession of influence in the market of the user electronics for many years, parallel withdrawal from segments of the television and cellular market, Philips from all tried to generate rather big profit on the business.

France van Hauten (Frans van Houten), the executive director of Philips Electronics, acted on the announcement of results in a year in Amsterdam on January 29, 2013.

«As we have online entertainments, people any more do not buy Blu-ray and DVD players».

Van Hauten who has headed Philips nearly two years ago, concentrated the efforts to company streamlining in work with a narrow sphere. For example, on development of hospital scanners and svetoizluchayushchy diodes which are used in systems of covering of large objects (Empayr-Steyt Bilding in New York). At this Philips continues to do such products for us, as razors and coffee-machines.

Philips reported that losses in the fourth quarter made 358 million euros (for comparison: for the same period of 2011 losses made 162 million euros) therefore in 2013 start of sales will be very hard.

Earlier the company warned investors that money for restructuring at a rate of 380 million euros, and also for penalty payment in 509 million euros for frauds in the market of the European television which were carried out since 1990 be required. Philips, certainly, will appeal against a penalty. Year before losses in the television market of 272 million euros set the company thinking seriously.

So, losses for last year were made by 1,29 billion euro, and net profit — 231 million euros. The net profit for shareholders made 226 million euros in comparison with 1,3 billion euro last year. What?

Difficult economic conditions and the American vanity concerning a tax policy led to that at the beginning of 2013, according to van Hauten, sales will go very hardly. But by 2014 the company will save already 1,1 billion euro. Philips goes to success. New products appear in the market for 40 % quicker, than in the past.

Now the company completely will concentrate on the medical industry and will conduct tough competitive policy. Sales of the medical equipment make 40 % of revenue of Philips, the light equipment — 32 %, and the user equipment — 26 %.

It should be noted that now it is considered one of the most strong contenders of Philips General Electric which is going to make revolution in medicine.

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