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Philips Selling Off TV Business?

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Despite Philips' recent successes in the shape of the Aurea 42PLF9900D, 47PFL9632D and the latters younger sibling the 32PFL9632, the company is reportedly giving serious consideration to selling its TV business, blaming the highly competitive US TV market.

Speaking at a press conference Philips' Chief Executive, Gerard Kleisterlee, announced that due to the poor margins it is making on its TV business it is reconsidering the way it operates. And, as Kleisterlee explained, this isn't such a strange move as Philips already chooses what products it sells in what markets based on whether it can generate the margins it deems worthwhile. Obviously, because of the huge revenues involved in the TV business, in the region of Billions, the idea that it is insufficiently profitable sounds rather crazy, but nonetheless it is plausible.

Kleisterlee suggested that the size of America and the large-scale use of online stores was one of the factors affecting this decision, suggesting that price competition made margins in North America less attractive than in Europe and elsewhere. As it is, we haven't actually received any real information out of Philips on the matter other than the indication that its TVs aren't selling as it might like, but there is the foreboding of interesting and possibly disappointing things to come.

Link:
Reuters story.

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