We have seen a few Philips consumer electronics products here and there for years. We have seen TVs, radios, tape recorders, CD/DVD players and recorders, BluRay players, MP3 players, and iPhone and iPad and iPod compatible accessories. But it so happens that the company has not been able to make any acceptable amount of profit out of these consumer electronic products. So the decision making people over at Philips thought that it is time they gave up the fight to fit in a world where they do not belong.
And hence, we are seeing the termination of a brand that has been in the market for years. The consumer focusing line of business at Philips has been sold to a Japanese company which goes by the name Funai Electric. So I guess starting soon enough, we will be hearing about accessories and cool new gadgets from Funai Electric, hopefully.
This also means that any consumer electronic product from Philips that you might have now, they may face service problems in the future, starting anytime now. The new company which is taking over the brand name may not provide servicing to the older products. You may have to catch hold of your local electronics handy man, or something like that.
So it is important for you to think over any buying decisions as well. Some people may think that since the company is sold now, all Philips consumer electronics products in the market now are going to be sold at their best price. So it is the right time to pick them up. But you also need to think about the servicing or the replacement of these products in the future, in case you may need them.
The Wall Street Journal reports that the Dutch company, Philips, had seen a steep net loss in the fourth quarter of last year, which led it to make this decision. Now, the company is said to improvise on its medical and lighting solutions which have brought the company good profit.
Source: TUAW and The WSJ