EXCLUSIVE: Philips Executive Angry After Distributor Talks Revealed

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EXCLUSIVE: A senior Philips Australia executive who called off talks with a local distributor about distributing Philips products after they spoke to Channel News has been described as having a hissy fit” over the incident by a fellow executive. Now it emerges that Philips may not make TV’s for the Australian market after all.

A Philips Australia executive has said that there is every possibility the Philips will not make flat panel TV’s for the Australian market despite the fact that several distributors have stuck their hand up to sell the product following the decision by the local Philips subsidiary pull out of the consumer electronic market.

“The Australian market is small and our local management have not achieved the success that we would have liked” an executive said.

“At this stage Philips Europe are still considering their options. We are told that Philips Europe do not want to be involved in small run production just to keep the Philips brand in the Australian market. Loca management are sill discussing issues with local distributors who may end up selling Philips products other than TV’s.”  the executive said. He requested that we not report his name.

One organisation tipped to distribute the product was Melbourne based Company Qualifi who also distributes the Philips Pronto remote control. However ChannelNews has been told that these discussions are now over.

The Philips insider said “Philips Australia is really angry that ChannelNews forecast their demise in Australia several months ago. This damaged our reputation with retailers becoming suspicious of our long term future in this market”.

 

ChannelNews has also been told that Philips Electronics Australia general manager, Matthew Moran who has been credited with failing to achieve sales growth in the Australian market and the man responsible for several bad decisions which led to poor TV sales was “Livid” when he read our exclusive story about Philips discussing the possibility of ongoing sales of Philips products via Melbourne based Qualifi. (See original story here)

“He was livid, he put on a real hissy fit, he phoned Qualifi and told them that they were out of the equation for simply talking to ChannelNews. He hates SmartHouse and ChannelNews because the constant coverage of Philips failures around the world”, said the Philips insider.

Michael Henriksen the Managing Director of Qualifi refused to discuss the issue with ChannelNews however he did admit that he was no longer in discussions with Philips following an angry phone call from Matt Moran following publication of a story in ChannelNews and SmartHouse.

Three years ago Philips Australia management engaged solicitors to try and stop ChanelNews reporting that Philips was in trouble globally  and that they had not made a profit for 15 years in the US market. At the time (2005) we reported that Philips Europe had given their US subsidiary 24 months to report a profit or they would close their US operations and move to a distributor model.

  In 2007 Philips announced that they were quitting the US market and transferring their US operation to Japanese electronics maker Funai. The two companies agreed to a brand-licensing agreement in which Funai now sources distribute market and sell all consumer TVs under the Philips and Magnavox brand names in the U.S. and Canada.

The deal begins September 1 and is good for five years. Funai will pay a royalty to Philips.

Matt Moran has failed to return any calls to ChannelNews.

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