Philips Consumer Electronics Predicts Strong Growth for Digital Products
12/17/98
Business Wire
(Copyright (c) 1998, Business Wire)
ATLANTA--(BUSINESS WIRE)--Dec. 17, 1998--
World's Third Largest CE Manufacturer Sets Vision for
Digital Evolution; Showcases Flagship HDTV Receiver,
other Key Digital Products
Philips Consumer Electronics (NYSE: PHG) expects the industrywide net value of digital video products to nearly double to $22 billion by the Year 2000 as consumers migrate from analog to digital technologies.
The projection was discussed at today's 1999 Editorial Briefing hosted by Atlanta-based Philips Consumer Electronics North America, sales and marketing organization of the $39 billion global electronics leader Royal Philips Electronics. The briefing gave local print and electronic journalists their first opportunity to meet top Philips executives since Philips Consumer Electronics North America established operations here last year. It also gave journalists an advance look at new Philips product offerings that will be shown at the Consumer Electronics Show (CES) in Las Vegas next month.
"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."
Minkhorst noted that 1998 has been "The Year of the Brand" for Philips, and the brand emphasis will continue during 1999.
"We are focused on generating high levels of brand awareness and preference for Philips in the United States," he said. "We are determined to make Philips a well recognized brand here. Building the Philips brand is our most immediate and critical challenge, and our integrated U.S. marketing program is an important step in our strategic intent to address it."
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 United States, a fully integrated HDTV receiver.
"Digital Television will drive the growth of the digital category," said Minkhorst. "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 providing 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 is among the first consumer electronics manufacturers to have a fully integrated HDTV receiver since digital signal transmission began in major U.S. markets, including Atlanta, on November 1.
Other key products showcased during the editorial briefing include Philips' dual-deck Audio CD Recorder; USB monitors, video cameras, and multimedia sound systems; DVD -Video players; WebTV(R); and Flat TV.
About Philips
Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of over US$ 39 billion in 1997. It is a global leader in color television sets, lighting, electric shavers, color picture tubes for televisions and monitors, and one-chip TV products. Its 256,000 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors, medical systems, business electronics, and IT services (Origin). Philips is quoted on the NYSE, London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at www.news.philips.com
NOTE TO EDITORS: Please note that for your convenience, Philips has
created the following rapid-response, toll-free number for all Philips
editorial inquiries: 1-800-210-9605.
Product slides/digital images available upon request.
CONTACT: Philips Electronics Jill Greenman, 770/821-2236 or Porter Novelli David Morrison, 770/280-8090
10:52 EST DECEMBER 17, 1998
Contact: CONTACT: Philips Electronics Jill Greenman, 770/821-2236 or Porter Novelli David Morrison, 770/280-8090
10:52 EST DECEMBER 17, 1998
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