Forced to withdraw from the North American market experienced remarkable embarrassment of Philips

As the market position of embarrassment, Philips Electronics has announced that it will no longer produce the United States and Canada market sales of television sets, and the brand rights to Japan well boat motors. Previously, Philips also ongoing to sell its holdings of LG-Philips LCD panel co., desires to fade out panel industry.

Market share fell out of the top 5

Data show that since 2006, Philips in the United States market share steadily decline, to the end of 2007, Philips's market share has grown from a year ago 17 per cent to 6.6% market rankings also dropped to sixth place, even at the low end of Vizio, Westinghouse, and other brands.

As TV sales and sales prices are falling, Philips sales profit was also being compressed. The beginning of the year, Philips CEO Kecilei has said that the Philips follow-up will focus on the market of products with high profit margins. Philips follow-up will be more reduced manufacturing, to focus on its patent.

To this end, the Philips decided to Japan's FUNAI electric motor sold right to use the Philips brand TV, from 1 September this year, FUNAI electric motor will be responsible for the Philips and Magnavox brand of procurement, distribution, marketing, sales, and customer service.

But Interestingly, FUNAI electric motors in the United States is not a strong brand, it is primarily intended for United States North American Marketing Emerson, Sylvania and Symphonic and other low-priced brand products. The industry therefore believes that it is not conducive to Philips in the North American market performance and brand reputation.

In fact, Philips has always relied on the "OEM" to crack their cost increases in global markets. Philips expects 2008 will outsource 1000 million LCD TVs, the year it is expected that sales total of 71%, compared with 60% of the 2007 outsourcing ratio. Currently, Philips has a TPV technology, TCL, Czech General and the new addition of FUNAI Denki, better world express five OEM business.

Gradual exit panel industry

In March of this year, as the exit single electronic markets and more energy lighting, medical, and consumer electronics strategy considerations of Philips, again sell its holdings of LG-Philips LCD Panel.

This Philips sold some valued 6.80 billion euros (about 105 billion) of LG-Philips stock, so that Philips LG-Philips shares from the original 19.9% drop to 13.2%. Last October, Philips had to 15.5 billion euros of the price is 13% of LG-Philips shares sold to a financial institution.

As Philips and Korea LG Electronics Co-financing of LG-Philips LCD Panel base, Philips was originally the 45% of the shares.

Moreover, in an interview with the media kecilei also indicated, it is expected that this year, will also be following the sale of a joint venture held by Philips LG Philips most co., only 2%-3%.

With Philips in the holdings of shares in the JV, LCD Panel manufacturers LG Philips (LG.Philips LCD) program was changed to LG display (LG Display).