Philips to get out of audio-visual

The Don · 29th January 2013, 03:21 AM

Philips, the Dutch electronics company is to get out of the DVD and hi-fi business to concentrate on its (now) core healthcare, light bulbs and home appliances businesses.

http://www.bbc.co.uk/news/business-21242127

I have a particular historic interest because Philips sponsored me through university, employed me during holidays and allowed me access to their staff shop (so that even 25 years later my Dad's house still has a number of Philips appliances).

I find it interesting that some companies always seem to either be diversifying or focusing on their core business but somehow always seem to go backwards at each step. Philips reminds me of ICI a bit. Years ago ICI was a major global business but since focusing on core businesses has managed to make itself into a niche player in the paints and surface coatings business. In the process it has lost most of its shareholder value but I'm sure that the business's management and advisors knew what they were doing.

My feeling is that Philips has the problem that it is neither fish nor fowl. It doesn't have the brand to compete with the likes of Sony on image but doesn't deliver value like LG or Samsung. Apart from maybe lightbulbs and and electric shaver, I haven't bought a Philips product in 20 years.

ddt · 29th January 2013, 11:26 AM

That's the end of an era. Philips once was a major player in the audio/video market, with innovations as the compact cassette tape and the CD, and of course the DCC and Video-2000.

cwalner · 29th January 2013, 12:10 PM

Originally Posted by ddt

That's the end of an era. Philips once was a major player in the audio/video market, with innovations as the compact cassette tape and the CD, and of course the DCC and Video-2000.

The problem was that they never seemed to have the knack to mass produce it efficiently, and would get shut out of the market by whatever company did.

dudalb · 29th January 2013, 12:53 PM

Originally Posted by cwalner

The problem was that they never seemed to have the knack to mass produce it efficiently, and would get shut out of the market by whatever company did.

Exactly. Having a innovative idea is only half the struggle. Being able to make it profitible is another thing altogether.

ddt · 29th January 2013, 01:03 PM

Originally Posted by cwalner

The problem was that they never seemed to have the knack to mass produce it efficiently, and would get shut out of the market by whatever company did.

They certainly weren't good at making an appealing design. In particular, their user interfaces seemed to be designed by engineers.

Weak Kitten · 29th January 2013, 01:07 PM

I agree, Philips has always been a good and innovative company. I'm sorry to see them leave the audio-visual market but I'm glad it's a change of focus rather than a company closing.

WildCat · 29th January 2013, 01:13 PM

Originally Posted by ddt

That's the end of an era. Philips once was a major player in the audio/video market, with innovations as the compact cassette tape and the CD, and of course the DCC and Video-2000.

Yep, if you have an S/PDIF cable the "P" stands for "Philips". The "S" is Sony.

Sony isn't doing so hot lately either.

PhantomWolf · 29th January 2013, 02:49 PM

This is a shame, my current monitor at home is a Phillips, they have always produced very good products you can rely on. They might not be the cheapest, but I've never had any issues with them, like I have other brands.

tyr_13 · 29th January 2013, 06:50 PM

This is essentially meaningless. Funai will continue to make sets. You'll see the remaining Philips line (that isn't already just a Magnavox with a different name sticker and stand) subsumed into Magnavox. Same with cables.

Acleron · 30th January 2013, 02:37 PM

Originally Posted by cwalner

The problem was that they never seemed to have the knack to mass produce it efficiently, and would get shut out of the market by whatever company did.

Didn't they licence some of those?

cwalner · 30th January 2013, 07:16 PM

Originally Posted by Acleron

Didn't they licence some of those?

I think they did with the CD, but I am pretty sure that even with that, Sony made a lot more profit from the CD than Phillips ever did.

jj · 3rd February 2013, 10:11 PM

"Focusing on the core business" ::= For AT&T that meant "trying to make money with long distance when their overhead was more than their competitors price to consumers".

In any business, there comes a time when the core business is going to fail. Those who hold to the core go over the cliff, crash at the bottom, and burn.

It really is that simple.

In Philips case, well, sorry, I probably can't comment as much as I'd like, but they made some interesting business decisions when they decided to get into content, oh, just like another big electronics company from Japan, remember them?

LG and Samsung are eating that company's lunch, too.

29th January 2013, 03:21 AM	#1
The Don Philosopher Join Date: Nov 2002 Location: Cymru Posts: 8,235	Philips to get out of audio-visual Philips, the Dutch electronics company is to get out of the DVD and hi-fi business to concentrate on its (now) core healthcare, light bulbs and home appliances businesses. http://www.bbc.co.uk/news/business-21242127 I have a particular historic interest because Philips sponsored me through university, employed me during holidays and allowed me access to their staff shop (so that even 25 years later my Dad's house still has a number of Philips appliances). I find it interesting that some companies always seem to either be diversifying or focusing on their core business but somehow always seem to go backwards at each step. Philips reminds me of ICI a bit. Years ago ICI was a major global business but since focusing on core businesses has managed to make itself into a niche player in the paints and surface coatings business. In the process it has lost most of its shareholder value but I'm sure that the business's management and advisors knew what they were doing. My feeling is that Philips has the problem that it is neither fish nor fowl. It doesn't have the brand to compete with the likes of Sony on image but doesn't deliver value like LG or Samsung. Apart from maybe lightbulbs and and electric shaver, I haven't bought a Philips product in 20 years.

29th January 2013, 11:26 AM	#2
ddt Mafia Penguin Join Date: Dec 2007 Location: Netherlands Posts: 10,320	That's the end of an era. Philips once was a major player in the audio/video market, with innovations as the compact cassette tape and the CD, and of course the DCC and Video-2000.
	__________________ Proud member of the Solipsistic Autosycophant's Group

29th January 2013, 12:10 PM	#3
cwalner Philosopher Join Date: Aug 2008 Location: Deepest Darkest Indiana Posts: 5,694	Originally Posted by ddt That's the end of an era. Philips once was a major player in the audio/video market, with innovations as the compact cassette tape and the CD, and of course the DCC and Video-2000. The problem was that they never seemed to have the knack to mass produce it efficiently, and would get shut out of the market by whatever company did.
	__________________ Vecini - Inconceivable! Inigo - You keep on using that word. I do not think it means what you think it means.

29th January 2013, 01:03 PM	#5
ddt Mafia Penguin Join Date: Dec 2007 Location: Netherlands Posts: 10,320	Originally Posted by cwalner The problem was that they never seemed to have the knack to mass produce it efficiently, and would get shut out of the market by whatever company did. They certainly weren't good at making an appealing design. In particular, their user interfaces seemed to be designed by engineers.
	__________________ Proud member of the Solipsistic Autosycophant's Group

29th January 2013, 01:07 PM	#6
Weak Kitten Graduate Poster Join Date: Sep 2010 Location: Lost and lonely...will you be my friend? Posts: 1,720	I agree, Philips has always been a good and innovative company. I'm sorry to see them leave the audio-visual market but I'm glad it's a change of focus rather than a company closing.
	__________________ A quick reminder to all participants that although incomprehensibility is not against the Membership Agreement, incivility is. Please try and remember this, and keep your exchanges polite and respectful. -arthwollipot

29th January 2013, 12:53 PM	#4
dudalb Penultimate Amazing Join Date: Aug 2007 Posts: 22,792	Originally Posted by cwalner The problem was that they never seemed to have the knack to mass produce it efficiently, and would get shut out of the market by whatever company did. Exactly. Having a innovative idea is only half the struggle. Being able to make it profitible is another thing altogether.

29th January 2013, 01:13 PM	#7
WildCat NWO Master Conspirator Join Date: Mar 2003 Location: Albany Park, Chicago Posts: 48,985	Originally Posted by ddt That's the end of an era. Philips once was a major player in the audio/video market, with innovations as the compact cassette tape and the CD, and of course the DCC and Video-2000. Yep, if you have an S/PDIF cable the "P" stands for "Philips". The "S" is Sony. Sony isn't doing so hot lately either.

29th January 2013, 02:49 PM	#8
PhantomWolf Philosopher Join Date: Mar 2007 Location: Lost Deimos Moon Base Posts: 9,905	This is a shame, my current monitor at home is a Phillips, they have always produced very good products you can rely on. They might not be the cheapest, but I've never had any issues with them, like I have other brands.
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29th January 2013, 06:50 PM	#9
tyr_13 Philosopher Join Date: Aug 2008 Location: Falconer, NY Posts: 9,657	This is essentially meaningless. Funai will continue to make sets. You'll see the remaining Philips line (that isn't already just a Magnavox with a different name sticker and stand) subsumed into Magnavox. Same with cables.
	__________________ Circled nothing is still nothing. "Nothing will stop the U.S. from being a world leader, not even a handful of adults who want their kids to take science lessons from a book that mentions unicorns six times." -UNLoVedRebel Mumpsimus: a stubborn person who insists on making an error in spite of being shown that it is wrong

30th January 2013, 02:37 PM	#10
Acleron Graduate Poster Join Date: Oct 2007 Location: In a beautifully understandable universe Posts: 1,929	Originally Posted by cwalner The problem was that they never seemed to have the knack to mass produce it efficiently, and would get shut out of the market by whatever company did. Didn't they licence some of those?

30th January 2013, 07:16 PM	#11
cwalner Philosopher Join Date: Aug 2008 Location: Deepest Darkest Indiana Posts: 5,694	Originally Posted by Acleron Didn't they licence some of those? I think they did with the CD, but I am pretty sure that even with that, Sony made a lot more profit from the CD than Phillips ever did.
	__________________ Vecini - Inconceivable! Inigo - You keep on using that word. I do not think it means what you think it means.

3rd February 2013, 10:11 PM	#12
jj grumpy old skeptic Join Date: Oct 2001 Location: Deep in the rain Posts: 18,503	"Focusing on the core business" ::= For AT&T that meant "trying to make money with long distance when their overhead was more than their competitors price to consumers". In any business, there comes a time when the core business is going to fail. Those who hold to the core go over the cliff, crash at the bottom, and burn. It really is that simple. In Philips case, well, sorry, I probably can't comment as much as I'd like, but they made some interesting business decisions when they decided to get into content, oh, just like another big electronics company from Japan, remember them? LG and Samsung are eating that company's lunch, too.
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