Dutch electronics manufacturer Philips announced that it plans to completely abandon the production of televisions. The reason lies in the inability to compete with Asian manufacturers whose products have flooded the market.
This intention was announced in an official statement by Frans van Houten, the company's chief executive.
Philips - one of the oldest and most famous TV manufacturers in the world. However, even this could not help in the fight against the Asians. As a result, in the first quarter of the current financial year alone, the company's losses amounted to millions of euros. Management Philips decided that no action would improve the situation, but only delay the inevitable.
However, the division for the production of TVs will not be closed, but everything will go to the same Asians. A joint venture will be organized with TPV Technology from Hong Kong. At the same time, the share Philips in the joint venture will be 30%. branded TVs Philips will be produced for another five years. It's just that another company will produce them.
The final agreement will be signed in the third quarter of this year.