Electronics conglomerate Philips has announced it is to stop manufacturing televisions for North American sale as of September as the flat-panel TV market continues to struggle.
The company will instead license its brand name to Japanese firm Funai Electric, in an agreement that will allow Funai the support of Philips’ design experts as it begins sourcing, distributing and selling televisions displaying Philips and Magnavox badges.
The move will cost Philips around $197 million (£100 million) in transferring its activities to Funai and employing “additional steps” to improve its performance in its strongest TV markets.
“Philips will add lustre to our existing portfolio, and consumers can continue to count on the Philips quality, design and innovation to which they have become accustomed,” said chief executive of Funai Tetsuro Funai.
