Philips

(1858–1942), founder The Philips Company was founded in 1891, by Dutch entrepreneur Gerard Philips and his father Frederik Philips. Frederik, a banker based in Zaltbommel, financed the purchase and setup of an empty factory building in Eindhoven, where the company started the production of carbon-filament lamps and other electro-technical products in 1892. This first factory has since been adapted and is used as a museum. , now a public museum, July 2008 In 1895, after a difficult first few years and near-bankruptcy, the Philipses brought in Anton, Gerard's younger brother by sixteen years. Though he had earned a degree in engineering, Anton started work as a sales representative; soon, however, he began to contribute many important business ideas. With Anton's arrival, the family business began to expand rapidly, resulting in the founding of Philips Metaalgloeilampfabriek N.V. (Philips Metal Filament Lamp Factory Ltd.) in Eindhoven in 1908, followed in 1912 by the foundation of Philips Gloeilampenfabrieken N.V. (Philips Lightbulb Factories Ltd.). After Gerard and Anton Philips changed their family business by founding the Philips corporation, they laid the foundations for the later multinational company. In the 1920s, the company started to manufacture other products, such as vacuum tubes. For this purpose the Van Arkel–de Boer process was invented. In 1924, Philips joined with German lamp trust Osram to form the Phoebus cartel. They were also aware that, unlike steam and internal combustion engines, virtually no serious development work had been carried out on the Stirling engine for many years. Philips asserted that modern materials and know-how would enable great improvements. Encouraged by their first experimental engine, which produced 16 W of shaft power from a bore and stroke of , various development models were produced in a program which continued throughout World War II. By the late 1940s, the "Type 10" was ready to be handed over to Philips' subsidiary Johan de Witt in Dordrecht to be produced and incorporated into a generator set as originally planned. The result, rated at 180/200 W electrical output from a bore and stroke of , was designated MP1002CA (known as the "Bungalow set"). Production of an initial batch of 250 began in 1951, but it became clear that they could not be made at a competitive price, besides the advent of transistor radios with their much lower power requirements meant that the original rationale for the set was disappearing. Approximately 150 of these sets were eventually produced. In parallel with the generator set, Philips developed experimental Stirling engines for a wide variety of applications and continued to work in the field until the late 1970s, though the only commercial success was the "reversed Stirling engine" cryocooler. The company filed a large number of patents and amassed a wealth of information, which it later licensed to other companies. Shavers The first Philips shaver was introduced in 1939, and was simply called Philishave. In the US, it was called Norelco. The Philishave remains part of the Philips product line-up to the present. World War II On 9 May 1940, the Philips directors learned that the German invasion of the Netherlands was to take place the following day. Being prepared, Anton Philips and his son-in-law Frans Otten, as well as other Philips family members, fled to the United States taking a large amount of the company capital with them. Operating from the US as the North American Philips Company, they managed to run the company throughout the war. At the same time, the company was moved (on paper) to the Netherlands Antilles to keep it out of German hands. On 6 December 1942, the British No. 2 Group RAF undertook Operation Oyster, which heavily damaged the Philips Radio factory in Eindhoven with few casualties among the Dutch workers and civilians. The Philips location in Eindhoven was bombed again by the RAF on 30 March 1943. Frits Philips, the son of Anton, was the only Philips family member to stay in the Netherlands. He saved the lives of 382 Jews by convincing the Nazis that they were indispensable for the production process at Philips. In 1943, he was held at the Vught internment camp for political prisoners for several months because a strike at his factory reduced production. For his actions in saving the hundreds of Jews, he was recognized by Yad Vashem in 1995 as a "Righteous Among the Nations". Post-WWII growth After the war, the company was moved back to the Netherlands, with its headquarters in Eindhoven. in Eindhoven, opened in 1966, August 2015 In 1949, the company began selling television sets. In 1950, it formed Philips Records, which eventually formed part of PolyGram in 1962. Philips introduced the compact cassette audio tape format in 1963, and it was wildly successful. Cassettes were initially used for dictation machines for office typing stenographers and by professional journalists. As their sound quality improved, cassettes would also be used to record sound, and became the second mass media alongside vinyl records used to sell recorded music. In 1966, Philips introduced the first combination portable radio and cassette recorder, which was marketed as the "radio recorder", now better known as the boombox. Later, the cassette was used in telephone answering machines, including a special form of cassette where the tape was wound on an endless loop. The C-cassette was used as the first mass storage device for early personal computers in the 1970s and 1980s. Philips reduced the cassette size for professional needs with the mini-cassette, although it was not as successful as the Olympus microcassette. The mini-cassette became the predominant dictation medium up to the advent of fully digital dictation machines. Philips continued manufacturing computer products through the early 1990s as Philips Computers. In 1972, Philips launched the world's first home videocassette recorder, in the UK, the N1500. Its relatively bulky video cassettes could record 30 minutes or 45 minutes. Later one-hour tapes were also offered. As the competition came from Sony's Betamax and the VHS group of manufacturers, Philips introduced the N1700 system which allowed double-length recording. For the first time, a 2-hour movie could fit onto one video cassette. In 1977, the company unveiled a special promotional film for this system in the UK, featuring comedy writer and presenter Denis Norden. The concept was quickly copied by the Japanese makers, whose tapes were significantly cheaper. Philips made one last attempt at a new standard for video recorders with the Video 2000 system, with tapes that could be used on both sides and had 8 hours of total recording time. As Philips only sold its systems on the PAL standard and in Europe, and the Japanese makers sold globally, the scale advantages of the Japanese proved insurmountable and Philips withdrew the V2000 system and joined the VHS Coalition. ) Philips had developed a LaserDisc early on for selling movies, but delayed its commercial launch for fear of cannibalizing its video recorder sales. Later Philips joined with MCA to launch the first commercial LaserDisc standard and players. In 1982, Philips teamed with Sony to launch the compact disc; this format evolved into the CD-R, CD-RW, DVD and later Blu-ray, which Philips launched with Sony in 1997 and 2006 respectively. (with his Emmy award in January 2004), Philips' greatest inventor in consumer electronics in the late 20th century, invented the coding technologies for CD, DVD, Blu-ray, and DCC In 1984, the Dutch Philips Group bought out nearly a one-third share and took over the management of the German company Grundig. Also in 1984, Philips split off its activities on the field of photolithographic integrated circuit production equipment, the so-called wafer steppers, into a joint venture with ASM International, located in Veldhoven under the name ASML. Over the years, this new company has evolved into the world's leading manufacturer of chip production machines at the expense of competitors like Nikon and Canon. 1980s–2000s: Decline Philips partnered with Sony again later to develop a new "interactive" disc format called CD-i, described by them as a "new way of interacting with a television set". Philips created the majority of CD-i compatible players. After low sales, Philips repositioned the format as a video game console, but it was soon discontinued after being heavily criticized amongst the gaming community. In the 1980s, Philips's profit margin dropped below 1 percent, and in 1990 the company lost more than US$2 billion (biggest corporate loss in Dutch history). Troubles for the company continued into the 1990s as its status as a leading electronics company was swiftly lost. In 1985, Philips was the largest founding investor in TSMC which was established as a joint venture between Philips, the Taiwan government and other private investors. In 1990, the newly appointed CEO, Jan Timmer, decided to sell off all businesses that dealt with computers which meant the end of Philips Data Systems as well as other computer activities. In 1991, the businesses were acquired by Digital Equipment Corporation. In 1991, the company's name was changed from N.V. Philips Gloeilampenfabrieken to Philips Electronics N.V. At the same time, North American Philips was formally dissolved, and a new corporate division was formed in the US with the name Philips Electronics North America Corp. In 1997, the company officers decided to move the headquarters from Eindhoven to Amsterdam along with the corporate name change to Koninklijke Philips Electronics N.V., the latter of which was finalized on 16 March 1998. In 1997, Philips introduced at CES and CeBIT the first large (42-inch) commercially available flat-panel TV, using Fujitsu plasma displays. In 1998, looking to spur innovation, Philips created an Emerging Businesses group for its Semiconductors unit, based in Silicon Valley. The group was designed to be an incubator where promising technologies and products could be developed. The move of the headquarters to Amsterdam was completed in 2001. Initially, the company was housed in the Rembrandt Tower. In 2002, it moved to the Breitner Tower. Philips Lighting, Philips Research, Philips Semiconductors (spun off as NXP in September 2006), and Philips Design, are still based in Eindhoven. Philips Healthcare is headquartered in both Best, Netherlands (near Eindhoven) and Andover, Massachusetts, (north of Boston). In 2000, Philips bought Optiva Corporation, the maker of Sonicare electric toothbrushes. The company was renamed Philips Oral Healthcare and made a subsidiary of Philips DAP. In 2001, Philips acquired Agilent Technologies' Healthcare Solutions Group (HSG) for EUR 2 billion. Philips created a computer monitors joint venture with LG called LG.Philips Displays in 2001. In 2001, after growing the unit's Emerging Businesses group to nearly $1 billion in revenue, Scott A. McGregor was named the new president and CEO of Philips Semiconductors. McGregor's appointment completed the company's shift to having dedicated CEOs for all five of the company's product divisions, which would in turn leave the Board of Management to concentrate on issues confronting the Philips Group as a whole. In 2004, Philips abandoned the slogan "Let's make things better" in favor of a new one: "Sense and Simplicity". In December 2005, Philips announced its intention to sell or demerge its semiconductor division. On 1 September 2006, it was announced in Berlin that the name of the new company formed by the division would be NXP Semiconductors. On 2 August 2006, Philips completed an agreement to sell a controlling 80.1% stake in NXP Semiconductors to a consortium of private equity investors consisting of Kohlberg Kravis Roberts & Co. (KKR), Silver Lake Partners and AlpInvest Partners. 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. In 2006, Philips bought out the company Lifeline Systems headquartered in Framingham, Massachusetts, in a deal valued at $750 million, its biggest move yet to expand its consumer-health business (M). In August 2007, Philips acquired the company Ximis, Inc. headquartered in El Paso, Texas, for its Medical Informatics Division. In October 2007, it purchased a Moore Microprocessor Patent (MPP) Portfolio license from The TPL Group. On 21 December 2007, Philips and Respironics, Inc. announced a definitive agreement pursuant to which Philips acquired all of the outstanding shares of Respironics for US$66 per share, or a total purchase price of approximately €3.6 billion (US$5.1 billion) in cash. On 21 February 2008, Philips completed the acquisition of VISICU in 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. VISICU was the creator of the eICU concept of the use of Telemedicine from a centralized facility to monitor and care for ICU patients. The Philips physics laboratory was scaled down in the early 21st century, as the company ceased trying to be innovative in consumer electronics through fundamental research. In 2010, Philips introduced the Airfryer brand of convection oven at the IFA Berlin consumer electronics fair. Philips announced the sale of its Assembléon subsidiary which made pick-and-place machines for the electronics industry. Philips made several acquisitions during 2011, announcing on 5 January 2011 that it had acquired Optimum Lighting, a manufacturer of LED based luminaires. In January 2011, Philips agreed to acquire the assets of Preethi, a leading India-based kitchen appliances company. On 27 June 2011, Philips acquired Sectra Mamea AB, the mammography division of Sectra AB. Because net profit slumped 85 percent in Q3 2011, Philips announced a cut of 4,500 jobs to match part of an €800 million ($1.1 billion) cost-cutting scheme to boost profits and meet its financial target. In 2011, the company posted a loss of €1.3 billion, but earned a net profit in Q1 and Q2 2012, however the management wanted €1.1 billion cost-cutting which was an increase from €800 million and may cut another 2,200 jobs until end of 2014. In March 2012, Philips announced its intention to sell, or demerge its television manufacturing operations to TPV Technology. 2011–: Focus on healthcare After two decades in decline, Philips went through a major restructuring, shifting its focus from electronics to healthcare, particularly from 2011 when a new CEO, Frans van Houten, was appointed. The new health and medical strategy have helped Philips to thrive again in the 2010s. On 29 January 2013, it was announced that Philips had agreed to sell its audio and video operations to the Japan-based Funai Electric for €150 million, with the audio business planned to transfer to Funai in the latter half of 2013, and the video business in 2017. As part of the transaction, Funai was to pay a regular licensing fee to Philips for the use of the Philips brand. and the consumer electronics operations remained under Philips. Philips said it would seek damages for breach of contract in the US$200-million sale. In April 2016, the International Court of Arbitration ruled in favour of Philips, awarding compensation of €135 million in the process. 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. This project was endorsed by the San Francisco Public Utilities Commission (SFPUC). In 2013, Philips removed the word "Electronics" from its name, becoming Royal Philips N.V. On 13 November 2013, Philips unveiled its new brand line "Innovation and You" and a new design of its shield mark. The new brand positioning is cited by Philips to signify company's evolution and emphasize that innovation is only meaningful if it is based on an understanding of people's needs and desires. On 28 April 2014, Philips agreed to sell its Woox Innovations subsidiary (consumer electronics) to Gibson Brands for US$135 million. On 23 September 2014, Philips announced a plan to split the company into two, separating the lighting business from the healthcare and consumer lifestyle divisions. It moved to complete this in March 2015 to an investment group for $3.3 billion. In February 2015, Philips acquired Volcano Corporation to strengthen its position in non-invasive surgery and imaging. In June 2016, Philips spun off its lighting division to focus on the healthcare division. In June 2017, Philips announced it would acquire US-based Spectranetics Corp, a manufacturer of devices to treat heart disease, for €1.9 billion (£1.68 billion) expanding its image-guided therapy business. In May 2016, Philips' lighting division Philips Lighting went through a spin-off process, and became an independent public company named Philips Lighting N.V. In 2017, Philips launched Philips Ventures, with a health technology venture fund as its main focus. Philips Ventures invested in companies including Mytonomy (2017) and DEARhealth (2019). On 18 July 2017, Philips announced its acquisition of TomTec Imaging Systems GmbH. In 2018, the independent Philips Lighting N.V. was renamed Signify N.V. However, it continues to produce and market Philips-branded products such as Philips Hue color-changing LED light bulbs. In 2021, Philips Domestic Appliances was purchased by Hillhouse Capital for $4.4 billion. The company, now known as Versuni, continues to sell small appliances under the Philips brand under license. In 2022, Philips announced that van Houten, who had served as CEO for 12 years, would be stepping down, after a key product recall cut the company's market value by more than half over the previous year. He was to be replaced by Philips's EVP and Chief Business Leader of Connected Care, Roy Jakobs, effective 15 October 2022. In 2023, the company announced that it would be cutting 6,000 jobs from the company worldwide over the next two years after reporting 1.6 billion euros in losses during the 2022 financial year. The cuts came in addition to a 4,000-person staff reduction announced in October 2022. In August 2023, Exor N.V., the holding company owned by the Agnelli family, took a 15% stake in Philips. The transaction was worth roughly €2.6 billion. On 17 September 2024, Philips announced the introduction of the 160 cm FDA approved version of its unique LumiGuide endovascular navigation wire. It also marked the 1000th patient treated with its breakthrough 3D device guidance technology. In December 2025, it was announced that Philips had agreed to acquire SpectraWAVE, a United States–based developer of enhanced vascular imaging technologies. The acquisition adds SpectraWAVE's intravascular imaging and physiological assessment tools to Philips' image-guided therapy portfolio, with integration planned into the Azurion platform. ==Corporate affairs==