Philips Consumer Electronics Predicts Strong Growth for Digital
Products
newsalert.com
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
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