Philips exits shrinking home entertainment business
AMSTERDAM (REUTERS) - Philips Electronics is selling its audio and video business to Japan's Funai Electric Co in a deal that almost completes its exit from consumer electronics to focus on more profitable home appliances and healthcare areas.
For many years, the Dutch company was a familiar household name in Europe, thanks to its high-quality goods such as television sets, cassettes and CD players.
But it has struggled to compete with lower-cost Asian manufacturers, including Samsung Electronics and LG Electronics, and has had to cut costs and sell assets over the last two years.
Philips had already hived off its ailing television business by setting up a joint venture with Hong Kong-based TPV last year.