Philips bids farewell to audio-video business
New Delhi: Consumer Electronic Maker Philips Electronics has decided to exit its shrinking home entertainment business, a news wire has reported.
As per report, Phillips has agreed to sell its audio and video business to Japan's Funai Electric Co for 150 million euros (USD 202 million).
With consumers going online for music, films and games rather than buying CDs and DVDs, Philips decided to get out of home entertainment even though it was profitable last year, Chief Executive Frans van Houten said, adding that the business was shrinking and "margin dilutive".
In future, the consumer division will focus on appliances such as shavers, toasters, juicers and coffee makers.
Analysts welcomed the deal as "an important divestment" that could fan hopes of further disposals in the consumer portfolio.
With Agency Inputs