According to reports, the company is accelerating the rectification of Philips’s lighting division, mainly due to the price of LED lighting products with approaches that of conventional light bulbs, more and more consumers tend to choose more energy-efficient LED lighting products.
Therefore, Philips will increase investment costs of rectification, rectification costs in the second half of 2014 from € 100 million (approximately RMB 838 million yuan) increased to € 170 million (approximately RMB 1.424 billion yuan). Rectification project includes narrowing the traditional lighting products production scale, and may even close the traditional lamp factory.
As countries around the world lifting the ban incandescent, LED market is more vigorous. However, the increasingly fierce price war constantly eroding the profits of major manufacturers, including Philips, Osram, etc.. Philips yesterday announced 2014 second quarter earnings, total revenue fell 6 percent, the company blamed the revenue decline in prices and reduce LED bulbs traditional lighting products sales.
Philips said the rectification will talk about this now what kind of impact, it is too early, but the company has sold or close some incandescent factory.
In addition, the company will continue to focus on LED interconnect systems and services. The company decided to LED lighting components and automotive sectors integrated into a separate company, is to expand its portfolio of leading digital lighting components, and better service for consumers and Philips itself. Driven by energy conservation and digital control demand growth, the lighting is constantly get more room to grow.
