Philips Consumer Electronic Company history

Frederik, a banker based in Zaltbommel, financed the purchase and setup of a modest, empty factory building in Eindhoven, where the company started the production of carbon-filament lamps and other electro-technical products in 1892.

Anton Philips, who was 16 years younger than Gerard, joined the firm in early 1895.

Philips built housing, schools, and hospitals and, from 1900 onward, provided free medical aid.

When the carbon-filament lamp became obsolete after 1907, Philips and other companies pioneered the development of lamps that used tungsten wire, which produced three times as much light for the same amount of electricity.

In 1912 Philips & Company was incorporated as N.V. Philips Gloeilampenfabrieken and began offering its shares on the Amsterdam Stock Exchange.

1914: Philips establishes a research laboratory.

That factory opened in 1916, followed shortly by additional facilities for the production of hydrogen gas and corrugated cardboard.

By 1919 Philips had expanded into the production of radio tubes.

1972: Philips brings its first videocassette recorder to market. It also began a long process of vertical integration in order to become more self-sufficient, establishing its own argon-production facility and its own glass works by the 1920s.

Gerard Philips retired in 1922 and was succeeded as company chairman by Anton, who was 48 years old.

Under Anton's management, the company began to manufacture complete radio sets; it displayed its first model at the Utrecht Trade Fair in September 1927.

The international program on Sundays commenced in 1928, with host Eddie Startz hosting the Happy Station show, which became the world’s longest-running shortwave program.

The development of television systems built on research carried out in the 1930’s, and TV sets became a mass-produced consumer product.

1939: The North American Philips Corporation (NAPC) is formed as a base of operations in anticipation of the possible Nazi occupation of the Netherlands; and Anton Philips retires and his son-in-law Frans Otten becomes president.

On May 9, 1940, the Philips directors learned that the German invasion of the Netherlands was to take place the following day.

Indeed, Philips received an early slap on the wrist in 1941, when the United States Department of Justice filed a light-bulb cartel suit against GE, other electrical producers, and Philips, containing charges of price-fixing and monopolies on patents.

After 1945 Philips expanded its product range.

Philips Radio was absorbed shortly after liberation when its two shortwave stations were nationalised in 1947 and renamed Radio Netherlands Worldwide, the Dutch International Service.

In 1949, the company began selling television sets.

In 1950, it formed Philips Records.

The growth of the Common Market, established in 1958, presented the company with new opportunities.

A whole new level of growth was reached in 1969, when Conelco merged with North American Philips Co.

From the early 1970’s, Research became more oriented towards converting scientific developments into Philips products rather than exploring new scientific fields.

As the video age dawned, Philips launched the first video cassette recorder (VCR) in 1971.

On the basis of its broad capabilities in Research, Philips (together with Sony) launched the highly successful compact disc in 1979.

In 1980, for example, Forbes attributed United States investors' coolness toward NAP to the possibility that the Philips Trust, not United States investors, stood to gain most from the company's growth.

In 1981 the company acquired General Telephone & Electronics Corp.'s television set business, helping boost its market share of the color TV market to 13.1 percent that year.

The company's fortunes began to change with the appointment of Wisse Dekker as president and chairman of the board in January 1982.

Philips did not start production of VHS players until 1984.

In 1985 it sold its inter-city bus transportation business (Carolina Coach Co. and Seashore Transportation Co.) as well as its hospital attendant TV business, N.A.P. Commercial Electronics Corp.

1986: Philips introduces the optical disk and the compact disc; and Cornelis van der Klugt becomes the president.

In 1987, however, this unusual arrangement was simplified, as PENAC was once again acquired by N.V. Philips as a wholly owned subsidiary.

Van der Klugt also made an effort to globalize the company's structure, improving profitability; Philips' profits rose 29 percent in 1988.

On January 1, 1989, Einar Kloster, a former executive vice-president of the North American Philips Corporation, returned as president of the company, replacing Cees Bruynes.

The first specific actions under the program were the imposition of an additional 35,000 to 45,000 reduction of jobs and the withholding of dividend payments in 1990.

In 1991, the company's name was changed to Philips N.V. In July of that year, the company announced a plan to reduce working capital and the size of its property portfolio by several billions of guilders within several months.

In June 1992, Philips announced that both its second-quarter and full-year earnings would fall sharply.

By 1993, Philips' cost-cutting measures, the sale of its interest in Japan's Matsushita Electronic Industrial Co., the liquidation of its debt, and improvements in results in its Consumer Electronics and Consumer Products divisions produced an annual profit of Dfl 856 million.

"philips electronics north america corporation acquires interest in cellularvision technologies and telecommunications." cellularvision, 1 june 1994.

Responding to new burgeoning applications for semiconductors, the company also beefed up its semiconductor research, signing a cooperative agreement with IBM in January 1995 to develop new semiconductors in a jointly owned facility in Germany, while forging ahead in DRAM process know-how.

"oracle and philips link homes in garden city, new york with country's first consumer e-mail system." oracle corporation, 20 june 1996. available at http://www.oracle.com.

wallace, charles p. "can he fix philips?" fortune, 31 march 1997.

"philips electronics expands 'green' commitment with 'ecovision.'" phillips news, 29 may 1998. available at http://www.news.philips.com.

By 1999, the company's income had increased substantially.

In 2000, Philips bought Optiva Corporation, the maker of Sonicare electric toothbrushes.

To increase revenues, Philips launched a DVD recorder in 2001.

The company sold its 75 percent owned PolyGram unit and announced the closure of about a quarter of its worldwide factories by 2002.

In December 2005 Philips announced its intention to sell or demerge its semiconductor division.

On 21 August 2006, Bain Capital and Apax Partners announced that they had signed definitive commitments to join the acquiring consortium, a process which was completed on 1 October 2006.

On 21 February 2008 Philips completed the acquisition of VISICU Baltimore, Maryland through the merger of its indirect wholly owned subsidiary into VISICU. As a result of that merger, VISICU has become an indirect wholly owned subsidiary of Philips.

In January 2011 Philips agreed to acquire the assets of Preethi, a leading India-based kitchen appliances company.

In March 2012 Philips announced its intention to sell, or demerge its television manufacturing operations to TPV Technology.

In April 2013, Philips announced a collaboration with Paradox Engineering for the realization and implementation of a “pilot project” on network-connected street-lighting management solutions.

On April 28, 2014 Philips agreed to sell their Woox Innovations subsidiary (consumer electronics) to Gibson Brands for $US135 million.”