On the recently held IFA Global Press Conference in Dubrovnik, Croatia, Maarten de Vries and Wiebo Vaartjes gave talks on the way Philips brand is going to evolve in the future.
With Philips announcing the spinoff of their TV division to TPV (Hong Kong based world’s largest manufacturer of computer monitors), there were a lot of questions about the future development of the brand. First and formerly, the new company is named TP Vision and it combines Philips Television and TPV.
The newly formed company will tie in the strength of Philips brand name with new and innovative products, all following the company design and style guidelines. At least, is what Maarten de Vries, newly appointed CEO said to us in Dubrovnik. New Philips, i.e. TP Vision will push the market with LED and 3DTVs, switch to OLED TV when it becomes viable and stick to design principles the original brand had, without the corporate overhead Philips TV division had to endure while it was a part of parent company.
The company will fight to expand the hospitality business unit, i.e. corporate sales. De Vries gave an example that Philips is already present in 80% of hotel chains in Europe region, and that the Philips brand tied nicely for the healthcare segment, where TVs were sold to accompany commercial medical equipment. As far as future goes, the company plans to put as much cards on the Smart TV trend as possible, with 80% of 2012 line-up being "smart", i.e. running an operating system with extended functionality.
The company will expand the functionality of TVs with products from Philips Consumer Lifestyle division. Weibo Vaartjes, Executive Vice President at Philips and General Manager of Philips Consumer lifestyle talked about devices that span from home cinema sound bars, audio products to unannounced devices such as the seven inch MIPS-powered tablet, initially for the China market. It looks like MIPS has found a sweetspot, which is ultra-cheap, or should we write ultra-affordable tablets which with a 7" capacitive touch screen and about a gigabyte of local storage run for $79. The question is, can Philips survive the performance downfall when compared to higher performing ARM processors?
In our talks with company representatives, we've heard that the ultimate target for TV manufacturers is to offer Android powered device to serve as the remote, and drive the sales and profit margin up on that functionality.
The question remains, would you buy a TV that comes with a tablet?