Philips to stop making televisions in USA

Royal Philips Electronics has announced that they are no longer going to manufacture television sets in the US market.

Their TV sets would now be manufactured under license by Funai Electric for at least five years.

Funai already offer several other brands in the market including Emerson, Sylvania, and Symphonic.

Philips was in a tough situation in this market. Their brand value failed to match that of Sony and they were unable to compete in the low-end market.

Paul Zeven, Philips’ North American chief executive officer spoke about this new development: “Margins here are razor-thin; this is a win-win situation. It is part of our worldwide agenda to focus on more stable market sectors.”

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