Philips is one of the most innovative electronic companies I knew as a young child as far back as 60s, 70s, and 80s. They make the best, durable, quality and long standing electronics and materials. I can remember philips iron, kettles and many more products. I believe they have a great future in health and other sectors. It will be great for them to move on from their stable longstanding name to new innovations and grow up powerful as they use to be. Dumping many of their by products must be very reasonable if they are able to weigh the pros and cons and have market for bigger things. I will advice that they stay focus, strong and motivated as they use to be in the olden days and maintain their good name.
Although i did not understand the reason behind dumping the semiconductor division but i do see a great future ahead for Philips in healthcare and appended sector. There are many companies like GE, CISCO, Intel etc that are trying to get into this sector but it will be interesting how this sector take shape in coming years.
Performance of smartphone makers in OEM market has been far overwhelming in the last few years, this is largely due to not only innovation also miniaturisation is another key factor. Comparison with LG and Samsung, these 2 have large market base in developing world - Africa and Asia pacific typical example, philip not really known as such. While Philip market dominance only in europe and other areas.
But Philip electronics is fairing well in health sector market segment though.
Great analysis Jenn. It has been awhile since Philips has made any kind of breakthrough and the company seems content to sit on the sidelines in its market niche. It's too bad--Philips was one of the most innovative electronics companies in its heyday. If there is anything we've learned by watching the industry this long, it is the old guard companies have to continue to innovate or chnage their business model in order to stay relevant. IBM is one success story I can think of offhand. I's like to hear some more examples from readers. How about GE?
Your reply to TaimoorZ is exactly the way I feel. I just don't understand why so many companies now are content just being on the stable side instead of looking at the growth market? One would think that you should always be looking at innovations and growth and seeing where your company can make the next great impact. Maybe they feel better about playing it safe for fears that they might sink.
Jennifer, you are right. Philips is dumping its many of the bi-products arms from 2005. Initially they dumped the semiconductor to NXP, then their health care division etc. I understood that, they are showing more preference to outside components than in house production of such components. I meant they would like to work in assembly model rather than production mode.
TaimoorZ - Fair enough. A Samsung-LG-Philips comparison is a good idea.
But to your point of companies being "fairly stable with the market being saturated." Not sure if fairly stable is an ideal state for any consumer electronics company. If the market is saturated, innovation isn't happening, and households don't need more than one - maybe two - electric shavers, how does a company like Philips move from "fairly stable" to "growing" ? Maybe I'm overthinking this - maybe companies have become content with staying on that side of the contraction-growth scale.
"dumping its semiconductor business and its stakes in TSMC, LG Display, and music giant PolyGram, in favor of focusing on consumer lifestyle"
Although focusing on consumer lifestyle was critical for Philips, but it doesn't justify the dumping of the its semiconductor business and its stakes in TSMC etc. I feel Philips would have been in better shape if it had retained those businesses because it would have given more diversification to their investment.
I think it would be a bit harsh to compare Philips with companies like Nokia or RIMS. The cell phone industry is way ahead in terms of innovation and partly it's because of the room for innovation and growing demand. Electronics industry on the other hand can be said to be fairly stable with the market being saturated. There isn't much innovation going on on that side. It would be interesting to see if other electronic giants such as LG and Samsung have made any progress in terms of innovation. Comparing Philips's financial results with these companies would also be worthwhile.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.