Philips to Outsource North American TV Business
In what it calls a “decisive step to improve profitability” of its TV business, Philips announced Tuesday that it will cease “sourcing, distribution and marketing” of TVs for the North American consumer market, and instead outsource those businesses to Funai Electric Corp. The move will require the company to take a loss of 125 million Euros (just around $200 million.)
The agreement, which is for a minimum of five years, will take effect Sept. 1 and cover the Philips and Magnavox brand names, for which Philips will receive royalty payments.
Philips also said they will concentrate their efforts on Europe and emerging countries, in order to improve probability in its TV division. What do you think about Philips’ decision? Talk about it in the Dealerscope forums.