Philips Consumer Electronics Predicts Strong Growth for Digital Products
NEW YORK--(BUSINESS WIRE)--Sept. 24, 1998-- World's Third Largest CE Manufacturer Sets Vision for Digital Evolution; Showcases Flagship HDTV Receiver, other Key Digital Products
Philips Consumer Electronics today announced that it projects industry-wide net value of digital video products to nearly double to $22 billion by the year 2000 as consumers migrate from analog to digital technologies. At a briefing for reporters in New York, Philips executives showcased several new digital products and outlined its market strategy in North America.
"Philips intends to lead the transition from analog to digital," said Robert Minkhorst, President and CEO of Philips Consumer Electronics North America. "The market in North America is changing and no consumer electronics company is better positioned to serve both the analog and digital segments of the video industry than Philips."
Philips projections indicate that the market for digital products, such as DVD-Video and Digital Television, will grow steadily in the coming years. Today, Philips estimates that digital products account for 10 percent of total net value of the Consumer Electronics industry, and by the turn of century, this figure is expected to grow to 20 percent of the industry total. By 2002, Philips expects the Digital Video category to comprise 30 percent of the industry net value. At the same time, the market for analog products is expected to remain strong and will still represent 50 percent of the industry total in the year 2002.
Minkhorst and other key executives of Philips showcased several new products at the editorial forum, including the company's first digital television offering in the U.S., a fully integrated HDTV receiver which will be among the devices available when digital broadcasts begin this Fall.
"Digital Television will drive the growth of the digital category," said Cees Jan Koomen, President, Philips Digital Video. "Already we see a strong demand for HDTV among home theater enthusiasts. In general, the digital evolution will bring us closer to consumers than ever before by allowing us to target specific needs and interests. The mass market of yesterday, the "one size fits all" approach, will give way to a more customized approach. For consumers, the entertainment experience in the home will be far more personal than it is today."
Philips is committed to a full family of DTV products, ranging from Digital TV-ready receivers such as the high-end 42" FlatTV, to fully integrated HDTV projection and direct view televisions capable of receiving and decoding all 18 approved ATSC formats. With the new HDTV 64PP9901, a 64" rear projection television, Philips will be among the first to have a fully integrated HDTV receiver when digital transmissions begin this fall.
Other key products showcased during the event include a dual-deck Audio CD-Recorder, USB video cameras and multimedia sound systems, the FW795W audio mini-shelf system which features wireless surround speakers, and the Fiori IFI, a one-line alphanumeric pager.
About Philips
Royal Philips Electronics is one of the world's largest electronics companies with sales of $39 billion in 1997. With 262,500 employees in more than 60 countries, it is well known for its activities in the lighting, semiconductor and components, consumer products, professional products and systems areas including software and services. Philips is quoted on the NYSE, London, Frankfurt, Amsterdam and other stock exchanges, and is the world's leader in lighting, color TV equipment and electric shavers. Philips maintains a site on the World Wide Web at philips.com.
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