Global Sources
EE Times-Asia
Stay in touch with EE Times Asia
?
EE Times-Asia > Manufacturing/Packaging
?
?
Manufacturing/Packaging??

Philips licenses North America TV biz to Funai

Posted: 10 Apr 2008 ?? ?Print Version ?Bookmark and Share

Keywords:Philips TV? licensing agreement? consumer electronics?

Royal Philips Electronics and Funai Electric Co. Ltd of Japan have entered into a brand licensing agreement under which Funai will assume responsibility for the sourcing, distribution, marketing and sales of all Philips' consumer TV activities in the United States and Canada.

The five-year minimum agreement takes effect Sept. 1 and stipulates Philips will receive royalty payments in exchange for Funai's right to exclusively use the Philips and Magnavox brand names for its consumer TV offerings in North America.

Philips also announced that it will continue to take steps to improve the financial performance of its TV operations by further optimizing its existing global supply base and focusing its TV business on its strongest markets, especially in Europe and in key emerging countries. To cover for the costs associated with these additional steps, and the costs associated with the transfer of the company's North American TV activities to Funai, Philips will take total charges of up to approximately $196 million in 2008.

"The agreement with Funai and the other measures to improve profitability we are planning, follow our commitment that we would take decisive steps in addressing the unacceptable profitability levels in our TV business in 2008," said Gerard Kleisterlee, Philips president and CEO. "We have an 18 year working relationship with Funai and are confident it is an excellent partner to implement this new model for Philips' television business in North America. This agreement will ensure a presence for Philips television in North America and uninterrupted access to innovative products for consumers."

Other Philips consumer business categories in North America are not affected by this agreement and will continue to be manufactured, marketed and sold by Philips. Philips' TV position in the rest of the world is also unaffected by this partnership with Funai.

Funai will have access to Philips' research and design experts to ensure Philips TVs deliver continuous innovation to consumers in both technology and form. These include the recently launched design collection and energy-efficient range of TVs dubbed the "Eco TV". Funai will be licensed on condition of compliance with Philips requirements on brand use, product quality, product design and provision of consumer care. Philips TV sales in North America amounted to about $1.56 billion in 2007. Completion of this intended agreement is subject to any mandatory governmental regulatory approvals.

"Philips and Funai have a long history together, and we are proud to be the trusted partner charged with managing this important and high-profile product category for Philips," said Tetsuro Funai, president and CEO of Funai. "As a premium brand, Philips will add luster to our existing portfolio and consumers can continue to count on the Philips quality, design and innovation to which they have become accustomed."

- Dennis Barker
Digital TV Designline





Article Comments - Philips licenses North America TV bi...
Comments:??
*? You can enter [0] more charecters.
*Verify code:
?
?
Webinars

Seminars

Visit Asia Webinars to learn about the latest in technology and get practical design tips.

?
?
Back to Top