Audio Video News

Philips will no longer sell television sets in the North American market. Instead it will license its Philips and Magnavox brand names to Funai, which makes TVs for Wal-Mart among others. The license is for five years. Other Philips consumer product businesses in North America will not be affected.

Philips will continue marketing sets in Europe and "key emerging countries," according to the press release. Philips presumably has been hit by the declining value of the U.S. dollar and the simultaneous rise of the Euro, which makes life easier for U.S.-based export industries, but harder for European ones.

Philips points to its 18-year working relationship with Funai as evidence that the latter "is an excellent partner to implement this new model." Funai will still be working with Philips' R&D department. According to TWICE, Funai recently posted its first operating loss since its founding in 1999.

Greying industry observers will no doubt recall that Magnavox was once an independent company manufacturing TVs in the United States. The first TV set of my childhood memories was a Magnavox, black and white, with built-in phonograph and AM/FM radio, in a beautiful wood cabinet--quite an advanced product for its time. Those days are long gone.