Philips, who invented the tapes and had been fighting for the consumer electronics industry for 80 years, now left consumer electronics market. In the field of consumer electronics, European companies are in recession, and correspondingly, China-ROK enterprises are rising.
January 30, Philips announced € 150 million sales of audio, video, multimedia and accessories business to Japan's Funai Electric in cash plus a brand licensing fees. So far, the Philips consumer electronics business has all been stripped. In this regard, the Philips CEO Frans van Houten felt relieved, he said, the consumer electronics business has diluted the profit margin of the Group as a whole and it is time to get rid of this business.
The data shows that Philips had a net loss of 358 million Euros in the fourth quarter last year, more than doubled year-on-year (net loss of 162 million Euros in Q4, 2011). The company also issued a warning that sales growth may slow in the beginning of this year.
In the future, Philips will focus on the medical and lighting equipment. The medical industry has become the main plate of enterprises such as Siemens and GE. Sony and Samsung are also interested in the promising market. Medical equipment lucrative profit margins are as high as 40% -50%, and it is a trend for consumer electronics companies to enter medical field.
