Philips exits the audio business: "underperformer"

Discussion in 'General Audio Discussion' started by GP49, Jan 29, 2013.

  1. GP49

    GP49 New Member

    > Royal Philips Electronics NV (PHIA), 50 years after unveiling the
    > compact cassette for music mixtapes, agreed to sell its audio and
    > video unit to focus on more profitable cancer scanners and
    > energy-saving light bulbs.
    > Japan’s Funai Electric Co. will pay 150 million euros ($202 million)
    > in cash and a license fee for the Lifestyle Entertainment unit, said
    > Amsterdam-based Philips, which also invented the compact disc with
    > Sony Corp. The deal is part of a revamp that helped quarterly
    > profit beat analysts’ estimates.
    > Philips Chief Executive Officer Frans van Houten is pushing the
    > manufacturer into high-margin areas such as lighting products that
    > save energy and health- and wellness offerings to move away from its
    > consumer-electronics past...
    > “Lifestyle entertainment has been an absolute underperformer in the
    > consumer lifestyle business,” said Rabobank analyst Hans Slob, who
    > has a “buy” rating on the stock. “It’s definitely positive news Van
    > Houten is taking more steps to improve the margins, by divesting this
    > low-margin business.”
    > The deal for the audio unit will probably close in the second half of
    > 2013, while the video business will transfer in 2017 because of
    > intellectual property licensing arrangements, Philips said.

    Philips Sells DVD Business as Health Demand Boosts Profit
  2. 1tumbleweed

    1tumbleweed Kozmik Kowboy Subscriber

    Philips has had problems in the consumer electronics arena for decades. The story in the industry is that, in all the years they owned Magnavox (and associated US TV business), they never made a dime. They ended up selling that business to Funai as well.

    I was a rep for Marantz during the period that they were owned by Philips, and everyone seemed in agreement that the best thing that ever happened to Marantz was getting away from Philips. Some people forecast doom for the Denon/Marantz affiliation, but it certainly seems to have worked out so far - for both companies.

    Funai is a very sharp company. They first started making inroads into the US by making VCRs sold under other brand names, and have edged their way bit by bit. Their stuff is by no means cutting edge, but it's not junk, either.

    By the way, one of the first things I learned while selling Marantz was the comment, "Stop anyone on the street in Europe and ask them what Philips makes, and they'll tell you light bulbs.":scratch2:
  3. mr_fred

    mr_fred AK Subscriber Subscriber

    too bad -- I had a nice Philips shortwave radio during my time in the Peace Corps (Liberia, 1976-78). Truly, it was a great radio.
  4. coonmanx

    coonmanx New Member

    I have a couple of Philips flash drives. Nothing in the way of audio equipment.
  5. typesix

    typesix New Member

    My mom had a Magnavox VHS/DVD combo unit made by Funai(it's still made) that had the VHS die within a year and the DVD quit two years later despite only been used less than 10 plays. Lot of online horror stories with Funai made stuff of recent years .
  6. 33&athird

    33&athird Turn on & Tune in

    Never really listened to much of Philips gear, the one thing that I have is a Magnavox CD player, which is quite nice, but I attribute that to Magnavox. Also have(had) a Philips/Magnavox TV that lasted a good long while, pretty decent stuff.

    Just checking the philips wiki page to check some years, I had no idea it was founded to sell moving-coil speakers, which the founders invented...all the way back in 1918:yes:
  7. reggaenaut

    reggaenaut New Member

    Philips just could not compete against the Asian Power houses. The emergence of South Korea has exacerbate the struggle.
    Last edited: Jan 29, 2013
  8. frommerstop

    frommerstop Well-Known Member

    My first CDP was a Sylvania branded top loader made by Philips... it still works, some 30 years later! I used to have a really nice 80wpc integrated amp by Philips too, I can't recall the model... 386 maybe?, not sure, but it was a great amp, much better than the run of the mill Japanese stuff from the late seventies.
  9. Battra92

    Battra92 New Member

    Kind of like GE over here. :p

    Well, maybe not around here (close to the capital region of NY) since GE had manufacturing plants in Western MA and in Schenectady NY people seemed to be loyal to GE. When my wife and I were house shopping most of the older houses had several vintage GE appliances. Kind of neat to see how they evolved over the years, style wise.

    The only Phillips product I ever had success with was a DVD player I got on Woot that, thanks to a few button presses, is region free and will convert PAL to NTSC.
  10. 1tumbleweed

    1tumbleweed Kozmik Kowboy Subscriber

    Very nice amp, I remember seeing one of those years back. Magnavox-era Philips design, made in Japan but likely not by Marantz.
  11. chicks

    chicks Well-Known Member

    I built some speakers way back in the late '60's - early '70's using Philips drivers, IIRC a 1" dome and an 8" mid/woofer.

    Only current Philips product is one of their earliest CDP's. Still works flawlessly.

  12. ebacon

    ebacon AK Subscriber Subscriber

    I briefly owned a Philips PC sound card a little over ten years ago. The software was buggy as hell so I changed to a Creative Labs SoundBlaster.
  13. Arkay

    Arkay New Member

    I have a 54" Phillips Plasma TV on in the room as I'm typing this. It works great! These models were a little more expensive than some when they first came out, but were known for picture quality. The built-in sound isn't bad for TV sound, either (although I use other devices for better sound quality, as most people do). They sold well enough initially, but I don't think they kept up with the competitors like Samsung when it came to lowering prices, though, and over time became marginalized.

    Years ago, a similar thing happened with CD players. Phillips had some of the best CD drives ever made for a few years --some of them were OEM'd into some big-bucks name-brand hi fi units-- but after a while they lost the edge to competitors making larger numbers of cheaper units. I have one of those CD players, and it still sounds good. Also a DCC player that likewise works (when I can be bothered to use it; too few tapes to make much use of it! LOL).

    A little sad to see them leave this market, but it's understandable. Companies need to focus on where they are competitive, and cut business lines where they aren't. "Survival of the fittest" applies to corporate life, just as much as to organic life.
    Last edited: Jan 29, 2013
  14. Battra92

    Battra92 New Member

    I really wish there was a modern CD player or transport that looked like that. I would certainly buy that. Why can't gear look cool like that instead of black boxes? :p
  15. coonmanx

    coonmanx New Member

    I forgot that my Speakerlabs use Philips soft dome tweeters which are really nice. Goldwood is now making copies of them. My Avid 102s which are in the need of cabinets right now also use Philips tweeters.
  16. chicks

    chicks Well-Known Member

    Olive O3HD

  17. frommerstop

    frommerstop Well-Known Member

    Yup, that's the same CDP as my Sylvania! They didn't sound nearly as harsh as the early Sony, or Technics stuff either, although I had no idea it sounded any different back then... after all, we were all told "digital is perfect", so I just bought the first one I found - think I bought it at Hudson's for something like $700.
    Merridian did a nice mod to that old player, it was probably one of the first custom "high end" players.
  18. jmchrislip

    jmchrislip Active Member

    I had a GA-212 Turntable in the 70's. A very good table.
  19. slow_jazz

    slow_jazz AK Subscriber Subscriber

    I currently own a Philips 3 cd player and sinlge burner. Must be 10 years or older and still going strong.
  20. rnorton

    rnorton Well-Known Member

    I just acquired a minty Philips AF677 Turntable (1979 vintage) and it's as good or better than my old GA212 was before I foolishly sold it. Also sold as the Grundig PS2000.

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