European consumer electronics Company Philips, who quit the Australian TV market three years ago, only to cut new deals with distributors, is now in trouble in Europe with the Company admitting that they are set to lose more than $155 million in their TV division this quarter.
A key director in the struggling European CE division is Australian Matt Moran, the former marketing manager of the Philips consumer electronics business in Australia.
Moran, who after failing to deliver a competitive strategy in Australia, was shipped into Philips Europe where today he is a Senior Director at Philips Consumer Lifestyle.
Yesterday Philips predicted a first-quarter deficit from its television division, this followed on from big losses in 2010.
Last year, Philips lost $100M selling TV’s with the Company struggling to compete with brands like Samsung, Sharp, LG, Sony and Panasonic.
Shortly after Philips exited the Australian market, Melbourne based Qualifi was appointed to sell Philips TV’s, a move the Company admits, is a struggle due to competition from other brands and the high cost of a Philips TV.
Philips, admits that they reeling from savage competition from rival brands and a massive build-up of stock in the channel.
The company said: “Pricing pressure remained severe in the television market while Philips took clear actions to further reduce inventory as previously indicated.”
This week outgoing chief executive Gerard Kleisterlee will be succeeded by Frans van Houten.
Some observers believe that the TV division could be sold. The company said that “profitability in its TV business remains a major issue and resolving this is an absolute priority”.