Once the largest manufacturer of radios in the world, Dutch company Philips has opted to exit the consumer electronics marketplace after 80 years of investment in that sector.
Philips has failed to compete with the likes of Apple, Samsung and Sony and, as a result, announced yesterday the sale of their audio, visual, accessories and multimedia business arms to Funai Electric Co., a Japanese company.
The sale was conducted for a mere $201.8 million in cash as well as a brand-licensing fee.
Philips’s CEO Frans van Houten said “Our consumer lifestyle business was margin dilutive to the group, so it was time to decide to move away from consumer electronics.”
Philips remains predominately a lighting and medical equipment production company.