Philips admits declining profitability in its TV division is "a major issue"
Philips has highlighted declining profits at its TV division as "a major issue" while reporting its financial results for the final quarter of 2010.
"A weak television market, negative consumer sentiment in developed markets and inventory management in the trade which resulted in a particularly slow December" hit the business, says Philips president and chief executive Gerard Kleisterlee.
Sales at the firm's Consumer Lifestyle division, which includes consumer electronics and small appliances, dropped 11 per cent to 2.7 billion Euros.
Overall, however, the Dutch electronics giant fared better, reporting a 79 per cent jump in profits compared to the same period in 2009, helped by cost cutting which saw net income rise to 465 million Euros (£395m) from 260 million Euros. Sales for the period were 7.4 billion Euros.
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Philips is the most worst service provider, oh and the its prices are expensive and a low quality standard for its Tv's
I'm not surpised. Here in NZ many of their last generation of widescreen CRT's failed after only a few years after purchase. Philips would not do anything as they said it was "out of warranty".And this was in the day when Widescreen CRT's were very expensive.
I know a lot of people vowed never to buy Philips ever again.
Are they heading for the same route as the legendary Kuro?
The problem is more in house: poor distribution channels - shops never seem to stock them, very expensive,lack of features (hd runers as others have mentioned. Also there brand positioning is very confusing. Are they competing with Sony's of this world or trying to be a lifestyle manaufacturer similar to Lowe and B&O. Shame as my old CRT was philips and it was superb.
@Stephen Vann: Yeah, I was just scrolling down the page to ponder the same thing - how much their interesting decision re HD tuners cost them sales? I've seen it noted negatively in, I think, every review I've seen (from this and other sources) - it certainly stopped me outright from buying a Philips set - a year ago I was just waiting for this feature to included before I bought a Philips TV.
Maybe if they stop making TVs they'll licence Ambilight to other manufacturers?
Is it any wonder that there TV division is doing badly when there 2010 TV range did not include HD TV tuners unlike all the other major Tv makers who included it on almost all TV's from �600 up, and bad "inventory management in the trade" when they had pulled out of the big chain stores which is where most people purchase such items in the UK.