The first Philips consumer television product
Royal Philips Electronics, a Netherlands-based electronics firm and old-line television receiver manufacturer, has announced that it has entered into an agreement with TPV Technology that will redirect a large portion of its television receiver business to a joint venture established by the two companies. This joint venture is part of a strategic partnership, with the 70 percent of the new company being owned by TPV and the remaining 30 percent by Philips.
“The partnership will help create the scale and focus needed for our Television business to return to profitability and to be successful in the very dynamic television industry,’’ said Frans van Houten, chief executive officer at Philips. “We are committed to the continuity of Philips Televisions in the market through this venture. The partnership will leverage the strength of the Philips brand, innovation power and trade relationships, with the additional scale and manufacturing strengths of TPV. This decisive step is the right one for the television business, Consumer Lifestyle and Philips as a whole.’’
The joint venture, which was announced on April 18, will assume responsibility for designing, manufacturing, distributing, marketing, and sales of the Philips television brand throughout most of the world, with the exception of the United States, Canada, Mexico, mainland China, India, and certain South American countries. The existing brand licensing arrangements for these regions will remain in place, and are not slated to become part of the new Philips/TPV partnership.
“We are very excited to have Philips as partner in this TV joint venture,” said Jason Hsuan, TPV chairman and chief executive officer. “We have had a solid working relationship with Philips for many years and we are confident that together we can become a leading player in television globally. Today’s announcement marks an important step in realizing our growth ambitions in the television business and I am delighted to work with Philips as a partner on this.”
Philips traces its roots back to the 1890s and the manufacturing of light bulbs. The company today employs more than 100,000 persons and has sales and service operations in more than 100 countries.
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