Philips, a brand well known for their televisions and optical media devices,have just bowed out of the consumer electronics market, and are now focusing all of their energies into the medical equipment and lightning businesses. Philips have sold their consumer electronics business to Japanese manufacturer Funai Electric Co. for $201 million.
Philips’ CEO, Frans van Houten talked to The Wall Street Journal, saying “Since we have online entertainment, people do not buy Blu-ray and DVD players anymore.”
Like Cisco, Philips found the CE market fraught with peril. The 80-year-old Dutch company originally built radios but backed Betamax in the 1980s and continued selling televisions and optical disk players in a saturated market. With competitors coming from all sides, the most interesting thing Philips could produce was the Ambilight system for splashing color behind a television based on the video on the screen.