Philips decisively to get rid of the consumer electronics business focus on high-margin areas

Recently, the reporter saw Shanghai Suning appliance stores Philips TV is still normal sales, product, price, after-sales service, were not to make any adjustments.

Philips announced, to 150 million euros in cash and in the form of brand licensing fee, audio, video, multimedia and accessories business is sold to Japan's Funai Electric. As a result, Philips' consumer electronics business has more than 80 years of history, has all of its consumer electronics business to peel.

Peel the consumer electronics business

Throughout Philips architecture and business restructuring, the consumer electronics business is shrinking. In August 2006, Philips semiconductor business for sale; September 2006, the sale of the mobile phone business to China's Electronic Information Industry Group; 2007, after another large-scale reduction of the stock of the LCD panel; 2008, is no longer in production to the United States and televisions sold in the Canadian market. This time, altogether withdrew from the consumer electronics market, concentrate on medical equipment and lighting business.

Philips CEO Frans van Houten, this feeling relieved, he said, the consumer electronics business has diluted the profit margin of the Group as a whole, it is time to get rid of this business.

Philips said consumers are generally shifted to enjoy music, movies and games online, instead of buying a traditional CD and DVD, plus the impact of products such as iPhone, iPod, iPad, traditional home entertainment market is gradually narrow margin is not high.

Liu Buchen, told reporters that the, Korean Enterprises rapid response capability and low-cost strategy, making Europe and the United States, declining competitiveness of Japanese consumer electronics products, to withdraw from the market is the trend. Not only is Philips, Germany's Siemens, France's Alcatel and Ericsson of Sweden also withdrew from the consumer electronics market. Compared with South Korea's Samsung, the Japanese consumer electronics giant Sony, the European enterprise product line is too thin, agile response to user demand enough technical superiority has not been very well translate into market advantage.

"It is undeniable that European companies such as Philips slow to react and adapt to the global electronics market, mobile Internet and intelligent trend this come to an end of its business." Said Liu Buchen, the interaction of people and mobile devices, and a variety of equipment mode of interaction is changing, this becomes a new trend of life, did not keep up with the trend is bound to be eliminated.

Focus on high-margin areas

In future, Philips will be more focus on the areas of medical, lighting, small appliances, high-profit, and located in the new direction of the transformation. Japan's Funai Electric Consumers continue to provide services for Philips Audio and accessories business, to enter markets such as Brazil, Russia, India and China.

At the same time, Philips Reported fourth quarter of 2012, Philips profit of 875 million euros, a year-on-year growth of 50%. LED lighting business sales rose 43%, and now accounts for 25% of the lighting business. Previously, Philips Lighting head of China has said that the future of LED lighting business with the traditional lighting business will be neck and neck. In addition, Philips's personal care, health care, home care and kitchen appliances, coffee business, a growth of nearly 10%.

Liu Buchen, told reporters that Philips medical equipment revenue, has long been higher than the income of the electronics industry. And medical industry has become the main plate of enterprises such as Siemens, GE, Sony, Samsung also expressed this market promising. Profit margins as high as 40-50% of medical equipment, consumer electronics companies involved in the medical field will become the wave of the future.

"The Philips transformation of the direction or the more optimistic." Liu Buchen, raise the level of people's quality of life, compared to the already saturated market of consumer electronics, medical equipment field upside is very impressive.

The concern is that the prospects for the development of the field of consumer electronics in 2013, the voice of the industry. Said Liu Buchen, Philips, Electrolux, established U.S. and European companies in the field of consumer electronics have been out all of 2013 and even the future, the consumer electronics industry, not only need to rely on innovation to make their own full of vitality, more need, according to the demand of the consumer market positioning products.

Reports

Sony 3 Discontinued MD player.

Recently, there is news that Sony plans from the beginning of March this year to stop selling the MD player will be coming to an end, which means that the MD this Sony digital music media invention.

MD is the abbreviation of the mini-CD (Mini Disc) ", chuck disc the size of half of the ordinary CD. It is reported that in 1992, Sony launched the Walkman brand MD player. In fact, Sony Discontinued MD player news in recent years, when the spread, but they do not have a clear timetable. In July 2012, Sony announced in September of that year, and gradually reduce the output of the MD. Today, the company officially announced that the The MD player would be discontinued in March.

According to Sony, the electronics industry MD hi-fi shipments peaked in 2000, close to three million units in 2012, declined to about 10 million units. In overseas markets, Sony has stopped shipments of the MD recorder.

The strongest opponents of the MD player Apple iPod. After the launch of the Apple iPod in 2001, the booming MP3 market in the past 10 years has been the physical media the killing "Pianjiabuliu,. Reporter has learned, CD sales is also very satisfactory, while the the MD such old physical media more days are numbered.

Stop shipments because music can be downloaded from the Internet popularity of machinery, etc., leading to a downturn in demand for MD player. Sony said that this stage will continue the production of the MD disc, and continue as MD player to provide maintenance and other customer services.

In the industry view, the mobile Internet has changed people's music consumption habits, but also to change the fate of the digital music media. The data show that the music users in China's 1.1 billion in 2011, 700 million mobile Internet users occupy. "Consumers are increasingly turning to digital music player without the need for an external storage media, Sony can only desperation MD player is no longer for sale." Industry sources said.