Philips leaves the consumer electronics market
Philips has announced that it has agreed to sell its audio and video business to Funai Electric Co. Philips has made audio and video items such as home theater speakers, smart phone docking stations, and other products for a number of years. Philips says that it is selling off that portion of its business to allow it to focus on more profitable home appliances and health care operations.
Don't Miss: Victoria's Secret Fashion Show 2016
Philips CEO Frans van Houten said that the A/V business was shrinking and becoming "margin dilutive" even though the segment was profitable last year. The company plans to focus on appliances such as shavers, toasters, juicers, and coffeemakers.
Analysts were glad to hear about the deal saying that it was an important investment for the company. Philips also says that shedding the two business segments will complete its repositioning away from consumer electronics.