Royal Philips

Royal Philips is a company headquartered in the Netherlands. Philips is one of the largest manufacturers of medical devices.

At one time, Philips were developed:

• tape compact cassette
• compact disk
• GSM cellular phone
• DVD, JPEG, MPEG technologies
• xenon car lamps
• UHP lamps, etc.

In 2017, the company has 71,000 employees in more than 100 countries. The company says it holds more than 59,000 patents, 35,000 registered trademarks and 81,000 design designs.

Areas of activity

• Philips Healthcare - In 2016, sales of Philips health and healthcare solutions amounted to 17.4 billion euros.

Philips in Russia

Main article: Philips in Russia

The deal of one of the founders of Philips with the Russian tsar fundamentally changed the company's business in 1898. Since then, the company has fruitfully collaborated with the USSR and continues to develop in the new Russia.

Company executives

• 1891–1922: Gerard Philips
• 1922–1939: Anton Philips
• 1939–1961: Frans Otten
• 1961–1971: Frits Philips
• 1971–1977: Henk van Riemsdijk
• 1977–1981: Nico Rodenburg
• 1981-1982: Cor Dillen
• 1982–1986: Wisse Dekker
• 1986–1990: Cornelis Van der Klugt
• 1990–1996: Jan Timmer
• 1996–2001: Cor Boonstra
• 2001–2011: Gerard Kleisterlee
• Since 2011 - Frans van Houten

Performance indicators

2022: €1.3bn loss due to recall of defective breathing equipment

In mid-October 2022, Philips reported a decline in revenue for all of its divisions in the third quarter of 2022 amid the recall of medical equipment and more significant than expected supply chain issues. Shares of the medical device manufacturer fell 12%.

According to Philips, the troubled division of Respironics, which suffered from the recall of 5.5 million ventilators, suffered non-cash losses of €1.3 billion in the third quarter of 2022.

Supply chain problems, which Philips called more significant than expected, hindered the company's ability to supply and install medical equipment, which led to a reduction in sales by about 5% to €4.3 billion in the third quarter of 2022, the company said in a statement detailing preliminary revenues.

Philips added that it plans to increase productivity by reducing the number of products under research and development, which forced it to record non-cash costs of about €165 million per quarter.

While the company said it expected a better second half of 2022 compared to the first six months, executives still forecast prolonged supply chain disruptions and a worsening macro environment. At the same time, comparable sales will fall by the middle single digits, and the EBITA margin will be in the range of high single digits and double digits.

In the Diagnostics and Treatment segment, comparable sales are expected to decline by -10% -20%, and in the Connected Care segment - by -10% -20%, while in the Personal Health segment, comparable sales are expected to grow by + 10% + 20%. Due to lower sales, the group's adjusted EBITA for the quarter will be about €210 million, or about 5% of sales, Philips said in a statement. The volume of new orders fell by 6% compared^[1]

2020

Diagnostic Imaging Medical Device Market Share - 20.3%

At the end of 2020, Philips occupied 20.3% of the global market for medical devices for diagnostic imaging (British Evaluate data). Read more here.

Sales of medical equipment for hospitals and clinics decreased by 4%, revenue - 19.54 billion euros

Philips ended 2020 with revenues of 19.54 billion euros, which slightly exceeds the one-year-old figure of 19.48 billion euros. Excluding currency fluctuations, sales increased by 3%.

The largest division of Philips remains Diagnosis & Treatment (equipment for diagnostics and treatment with visual control), which in 2020 registered turnover at 8.18 billion euros. This is 4% less than a year ago.

In the direction of Connected Care (solutions for remote monitoring of patients), revenues increased by 19%, to 5.56 billion euros. And the Personal Health division (personal care devices such as razors, toothbrushes, photoepilators, etc.) received revenue of 5.41 billion euros, which is 8% less than in 2019. All remaining products brought Philips at the end of 2020 total revenue of 389 million euros, while in 2019 the result was measured at 469 million euros.

The company received approximately 36% of its annual revenue in North America. In Western Europe, the share was 24%. Philips' net profit in 2020 reached almost 1.2 billion euros against 1.17 billion euros a year earlier.

In its financial statements, Philips said that in 2020, the company's products and solutions improved the lives of 1.75 billion people around the world against 1.64 billion in 2019. This number includes 207 million people from the low-income category of the population.

The Dutch manufacturer has concluded dozens of strategic agreements, including with the University Hospital of Rennes, one of the top ten medical institutions in France.

In 2020, Philips spent 1.9 billion euros on research and development. More than half of R&D the company's staff is engaged in projects in the field software of and data science.^[2]

History

2023

Exor Holding Buys 15% Philips

On August 14, 2023, Exor holding, which controls the assets of the co-owners of Juventus football club, Ferrari and Christian Louboutin, announced an agreement to acquire a 15 percent stake in Philips.

Officially, the financial terms of the contract are not disclosed. According to Reuters, we are talking about the amount of approximately $2.8 billion. Under the terms of the agreement, in the future Exor may increase its stake in Philips to 20%, but this is not planned to be done in the short term. In addition, Exor has the right to offer one of its members to the Philips supervisory board.

Market participants note that the deal is being carried out against the backdrop of Philips' efforts to transform from an electronics and household appliance manufacturer into a medical device supplier. However, Philips' health care reputation has been hit hard by the recall of millions of defective breathing machines. Because of this, the value of Philips securities from April 2021 went down sharply, and the former head of the company was forced to resign. At the same time, Philips allocated €575 million euros for lawsuits related to the recall of low-quality products.

Exor in its investment strategy focuses on three segments - technology, healthcare and luxury. Thus, Philips falls under the first two categories. Exor also owns other health care assets: the holding owns minority stakes in the French structure Institut Mérieux and Italy's LifeNet.

The path of transformation chosen by Philips led to the creation of a company that brings together two areas - healthcare and technology, to which we are committed. The negotiations confirm the coherence of our views on the future, "said John Elkann, CEO of Exor.[3]

Payment of $62 million for bribery of civil servants

On May 11, 2023, the US Securities and Exchange Commission (SEC) announced that Philips would pay $62 million to settle proceedings related to possible bribery of foreign government employees.

We are talking about the US federal law on corruption abroad (FCPA). It regulates "the facts of offering, promising, providing tangible and intangible benefits to any foreign official." That is, companies face punishment for giving bribes to foreign officials in the interests of their business.

The SEC investigation relates to sales of Philips' medical diagnostic equipment in China. It is alleged that the company provided special price discounts to distributors to increase their profits, part of which could then be used to make illegal payments to government employees in the PRC. At the same time, employees of Philips subsidiaries in China and (or dealers), according to the SEC, influenced officials of local customers of medical devices in order to draw up technical specifications at open tenders in favor of Philips products.

In addition, the SEC ruling states that the procurement, organized in Philips' interests, considered additional offers from other manufacturers to "create the appearance of legitimate public bidding and comply with minimum requirements provisions under Chinese laws." The SEC ruling notes that Philips units in China have implemented a number of schemes that violate FCPA rules.

Philips agreed with the SEC's decision to pay the fine, without acknowledging or refuting the department's findings. Of the total amount of recovery, about $15 million will be civil fines and more than $47 million - penalties, etc.^[4]

Dismissal of 6 thousand employees

On January 30, 2023, Philips announced a reduction in staff by another 6,000 employees. This reorganization is related to the scandal that erupted in 2021 around the company's defective breathing devices.

The change in headcount was announced by Roy Jacobs, CEO of Philips. According to him, the company is experiencing serious operational problems. In connection with the identification of the marriage, Philips was forced to recall about 5.5 million respiratory devices. In addition, the company has faced class action lawsuits and an investigation by the U.S. Department of Justice. Macroeconomic factors and supply chain disruption had a negative impact on business processes. All this has created the need for restructuring aimed at reducing costs and improving the financial situation.

We will urgently take steps to ensure supply chain stability to improve operational flexibility and productivity. This includes the complex but necessary further reduction of our workforce by approximately 6,000 positions worldwide by 2025, Jacobs reported.

Layoffs will take place in stages. By the end of 2023, the company will reduce the staff by about 3,000 people. In parallel, Philips will solve existing problems and change the operating model with an eye to ensuring safety and improving the quality of patient care. In addition, the company will focus on fewer key projects, which are planned to provide all the necessary resources to achieve maximum efficiency. Philips intends to allocate 9% of total revenue for research and development, which will amount to more than €1.7 billion annually. In 2023, it is planned to fully complete the program of revoking defective products.^[5]

2022

Dismissal of 4 thousand employees to cover expenses after the recall of defective ventilators

On October 24, 2022, Philips announced a 5% reduction in headcount. The layoffs are related to the need to optimize costs in the face of falling sales. Due to inflation, a significant decrease in demand for Philips products is observed in China and, to a lesser extent, in Western Europe. The company points to difficulties with the supply of components and logistical problems.

Another reason for the reorganization is the fall in the market value of Philips by about 70% due to the large-scale program of recalling ventilators. In June 2021, the company shocked investors by announcing the entry of 5.5 million defective devices into the market. After that, Philips capitalization fell by about €30 billion. The manufacturer is currently in talks with the US Department of Justice on issues related to the recall program.

Шаблон:Quote 'We've already had five quarters of lower sales, lower profits and now we've also become unprofitable. To remain competitive and maintain profits, you need to work to reduce costs, "said Philips CEO Roy Jacobs. The reduction in staff will affect primarily the company's divisions in the United States and the Netherlands. Layoffs will affect business areas with falling sales. In total, about 4 thousand employees will lose their jobs, and the reorganization will cost about €300 million over the coming quarters.

According to Mr. Jacobs, the main priorities now are to restore the company's reputation and solve problems with supply chains, due to which there were failures in the shipment of a number of components, including microchips for consumer and medical equipment.^[6]

Appointment of Roy Yakobs as CEO of Philips

On August 16, 2022, Philips announced that Roy Yakobs plans to replace Frans van Houten as president and CEO from October 15, 2022. Read more here.

2021

Purchase of venous stent manufacturer Vesper Medical

In mid-December 2021, Royal Philips announced the signing of an agreement to acquire Vesper Medical, a company developing minimally invasive peripheral vascular devices. The buyer through this deal will further expand Philips' portfolio of diagnostic and therapeutic devices with an advanced portfolio of venous stents for deep vein disease. The deal is expected to be completed in the first quarter of 2022. Read more here.

$15.4M Grant to Develop Ultrasound Applications Package in Midwifery

On November 23, 2021, Philips announced that it had received a grant to develop a suite of ultrasound applications in obstetrics.

Bill & Melinda Gates Foundation Grant of $15.4 Million to Improve Quality of Obstetric Care in Low- and Middle-Income Countries

The project will be a step towards Philips' goal of improving the quality of life of 2.5 billion people worldwide annually by 2030, including 400 million people in communities deprived of sufficient access to health care

According to statistics, about 830 women in the world die every day due to complications during pregnancy and childbirth. The developed applications will help medical professionals diagnose pregnancy pathologies in the early stages, which will significantly reduce the number of obstetric deaths, as well as reduce perinatal mortality and morbidity.

The suite of apps will be used on Philips Lumify mobile ultrasound systems, which have already been rolled out as part of maternal and infant health support programs around the world for November 2021. The organizers of the project will draw on the experience of the Philips Foundation, which aims to expand access to quality medicine in regions where it is especially necessary. For example, one of the foundation's programs includes training obstetricians and paramedics to perform prenatal ultrasound screening at Kenya's village clinics. During research, medical professionals can remotely receive telemedicine advice from an ultrasound diagnostic doctor.

The fund also implements programs in Russia. For example, in 2021, together with the Rusfond Charitable Foundation, the Philips Foundation organized an initiative in which a number of state medical institutions in the Samara Region and the Republic of Buryatia received Lumify systems at their disposal free of charge. After the equipment was received, Philips specialists, together with experts from the Botkin State Clinical Hospital, conducted training sessions for specialists, at which they told how to use technologies in clinical situations. Doctors (anesthesiologists-resuscitators, emergency doctors, obstetricians-gynecologists, cardiovascular surgeons) of the regions already use Lumify devices in daily clinical practice both in departments of medical institutions and on visits, including in sanitary aviation, to conduct emergency research at home.

In Buryatia, Lumify systems are already helping to save the lives of mothers and babies. Specialists of the Territorial Center for Disaster Medicine of the republic use a mobile ultrasound system to assess the condition of the fetus in pregnant women who get into an accident. And the doctors of the Republican Perinatal Center of the Ministry of Health of the Republic of Belarus use Lumify on board the air ambulance to perform ultrasound for patients in critical condition, including those with intra-abdominal bleeding. Lumify helps to quickly diagnose life-threatening pathologies during childbirth and allows doctors to make tactical decisions in a timely manner, "said Sergey Krutiy, head of the Philips Ultrasound Systems Department in Central and Eastern Europe, Russia and the CIS.

The World Health Organization recommends that women undergo at least one ultrasound before 24 weeks of pregnancy to determine the gestational age of the fetus is significantly more reliable than the traditional method of calculating the date of the last menstruation before pregnancy allows. A more accurate estimate of gestational age will reduce the number of artificially induced births and improve the childbearing experience for many women. Helping mothers and newborns in a timely manner also helps avoid complications from preterm birth.

Using the Lumify system as an example, we see how Philips brings its expertise to on-site diagnostics. This helps to achieve a four-component goal: improving treatment outcomes, improving patient and physician satisfaction, reducing medical care costs, "said Mateis Groot Wassink, Head of Access to Care and Obstetric Ultrasound, Philips. - Thanks to a grant from the Bill and Melinda Gates Foundation, we will expand the capabilities of the device, which will improve the experience of both pregnant women and obstetricians around the world. We aim to reduce maternal and infant mortality rates and to make antenatal care more accessible in regions with limited material resources.

Philips and the Philips Foundation are running several programs for November 2021 to reduce maternal and newborn deaths in communities with limited access to care. These include partnership projects with the United Nations Population Fund and the Government of the Republic of the Congo, as well as the Aga Khan University Centre for Women's and Children's Health Development.

Sale of appliance business to Hillhouse Capital

At the end of March 2021, Philips announced the sale of its home appliances division (Philips Domestic Appliances) to Hillhouse Capital, an investment company . The value of the transaction is estimated at 3.7 billion euros. Read more here.

Purchase of technology developer for integration of medical equipment Capsule Technologies

At the end of January 2021, Philips announced the acquisition of Capsule Technologies for $635 million. According to the press release, thanks to the transaction, the buyer will have access to the IT platform developed by Capsule Technologies for integrating medical devices, monitoring vital signs and clinical surveillance. Read more here.

2020: Philips halts home appliances and focuses on medical tech

At the end of January 2020, Philips announced its departure from the home appliances market to fully focus on medical technology. The abandonment of the production and sale of coffee makers, air purifiers and other similar electronics will occur gradually. Read more here.

2018

Record revenue of 18.12 billion euros thanks to medical equipment

In 2018, Philips' revenue reached €18.12 billion against €17.78 billion a year earlier. Thus, the company's sales increased by 2% and turned out to be the largest in the history of the Dutch vendor.

The rise was largely due to the high demand for ultrasound devices, medical scanners and other high-tech medical equipment, especially in the Chinese market.

The annual turnover in the Diagnosis & Treatment division specializing in the production of medical devices for diagnosis and treatment increased by 5% to 7.25 billion.

In the direction of Connected Care & Health Informatics (IT solutions intended mainly for telemedicine) in 2018, revenue was registered at 3.08 billion euros, which is 2% less than a year ago.

In the Personal Health division (through it, the company produces toothbrushes, accessories for children and mothers, consumer electronics, razors, etc.), the Dutch company received revenue of 7.23 billion euros, which is 1% less than in 2018.

In 2018, Philips finished with sales of 4 billion euros in Western Europe against 3.8 billion euros a year earlier. In North America, revenues fell from 6.4 billion euros to 6.34 billion euros. In developed markets, the company earned a total of 12.2 billion euros (an increase of 2.5%), and in developing markets (Philips includes Russia) - 5.9 billion euros (+ 0.7%). Financial indicators for the Russian market are not presented in the annual statements.

In 2018, Philips's net profit was 1.1 billion euros against 1.87 billion euros in profit in 2017. The fall in profits in the company was explained by the branch of the lighting unit Philips Lighting.

Annual profit in the Diagnosis & Treatment division increased by 8.3%, in Connected Care & Health Informatics - fell from 206 to 179 million euros.^[7]

Renaming Philips Lighting to Signify

In 2016, the company spun off Philips Lighting into a separate company, which was renamed Signify in March 2018.

2017

Purchase of TomTec software developer

On July 18, 2017, Royal Philips, the parent company of Philips Healthcare, announced a deal to acquire the German company TomTec Imaging Systems, a leading provider of diagnostic medical imaging data analysis software, especially ultrasound.

Upon completion of the transaction, closed on June 18, 2017, TomTec's business and more than 100 of its employees became part of the Philips Ultrasound Business Group, Philips said.

The financial terms of the takeover were not disclosed. Since the beginning of the 2017 calendar year, this is the seventh acquisition of a Dutch vendor, Nasdaq notes.^[8] More on the deal here.

Spectranetics purchase for €1.9bn

On June 28, 2017, the Dutch company Philips announced its acquisition Spectranetics for 1.9 billion euros. With this deal, the buyer will be able to expand the business of producing medical devices with visual control. Upon completion of the transaction, 900 Spectranetics employees become part of Philips' medical imaging division. The combined Philips Volcano and Spectranetics business is expected to reach €1 billion (1.14 billion) by 2020 dollars. More. here

2016

Sale of Lumileds to investment funds for $1.5 billion

On December 12, 2016, Philips announced the sale of most of the lighting manufacturer Lumileds, which was valued at $2 billion as part of the deal - 40% less than the Chinese Go Scale Capital offered. Read more here.

The leader in Europe in the number of patents

According to the renting of the European Patent Office, in 2016, for the second year in a row, Philips is the absolute leader in the number of patent applications. In 2016, the company announced a total of 2,568 innovations. Philips maintains a leading position in strategically important categories such as Medical Technology, Electromechanics, Equipment and power, and Measurements.

Philips' intellectual property portfolio at this time is one of the most extensive and competitive. The company applies advanced technology and deep expertise in consumer products and healthcare to provide comprehensive solutions that improve people's quality of life across the health continuum.

Philips Lighting unit IPO: 25% stake sold for 750 million euros

At the end of May 2016, Philips listed its Lighting division, specializing in the production of LED, halogen and fluorescent lamps and electronic components. The company has separated this business from itself to focus on medical.

Euronext's stock exchange listed 37.5 million shares of Philips Lighting at 20 euros apiece, roughly in line with the middle of its target range of 18.5-22.5 euros. The market capitalization of this company was estimated at more than 3 billion euros. Read more here.

2015

Highlighting the Lighting Fixture Business and Building Lumileds

Lumileds became a separate company in 2015 when Philips restructured its lighting fixtures business. As a result, a new public company Philips Lighting was created, which allowed the Dutch vendor to concentrate on medical solutions. Read more here.

Record $500 million medical contract

On June 16, 2015, Philips announced the largest market contract in its history. health care Most of this agreement concerns the supply of information systems and services.

According to the Bloomberg news agency, citing a statement from Philips, the company has signed an agreement with the Westchester Medical Center, which for 15 years will provide clinical consulting services and supply equipment for monitoring and monitoring patients, digital medical imaging systems and tools for analyzing medical data.

2013: Renamed Royal Philips

In 2013, Philips Electronics was renamed Royal Philips N.V.

2012: 114,000 employees in 100 countries

In 2012, Philips sales amounted to 24.8 billion euros. The company has 114 thousand employees in more than 100 countries.

2011

Europe's largest consumer electronics maker

In 2011, the concern was the largest consumer electronics manufacturer in Europe. At this time, Philips produces lamps, radios, electric shavers, tape recorders, televisions, computers, laser disks, medical equipment, cell phones, the TDA SAA SAB series of chips, etc.

Philips is a leader in patented inventions, according to the World Intellectual Property Organization. Over the years, the concern has registered over 115 thousand patents in more than 60 business areas.

Annually, the concern allocates more than 8% of the company's total turnover for research activities.

No TV production

83 years after the release of the first experimental television set, Philips decided to abandon the production of TVs. The company could not continue to confront Asian manufacturers and suffer losses from ongoing dumping wars. In the first quarter of 2011, Philips lost 87 million euros in TV production. In the future, the panels will be produced by TPV Technology, a joint venture with Hong Kong-based AOC International.

Two-level management structure

For 2011, Phillips has a two-tier management structure consisting of the Board of Directors and the Supervisory Board, which controls the activities of the Board of Directors.

Board of Directors

The executive management of Philips is entrusted to the Board of Directors under the chairmanship of the President/CEO.

The council consists of at least three members (currently there are six of them). Members of the Board of Directors have collective rights and responsibilities. They are responsible for the overall direction of the company, the implementation of strategies and policies and the achievement of their goals.

Collective Leadership Committee

The Collective Management Committee consists of members of the Board of Directors, heads of business units and key managers. Members of the Committee shall be elected by the Supervisory Board. The main task of the Committee is to control compliance with business standards and the implementation of general policies.

Supervisory Board

The Supervisory Board oversees the policy of the executive management (Board of Directors) and the general state of affairs of the Company and its affiliates, and advises the executive management on the above issues.

2008

LCD TPV Technology Handover

On July 10, 2008, it was reported that Royal Philips Electronics had entered into a license agreement with Hong Kong-based TPV Technology that would transfer the production of Philips LCD monitors to its IT Displays division.

Under the terms of the agreement, TPV will manufacture, distribute, promote and sell Philips LCD monitors worldwide, and exclusively use the Dutch company's trademark. According to the plan, the deal will be completed before the end of 2008.

This step was implemented as part of Philips' previously announced strategy to increase the profitability of the computer monitor business, which totaled $940 million in 2007. As of 2008, Philips' television division, which includes IT Displays, is suffering losses due to high competition from Taiwanese manufacturers. So, in the last quarter, which ended in April, the profit of this division fell by 28%, and the company announced the reduction of hundreds of jobs.

Analysts praised the deal. According to a representative of JP Morgan, TPV already produces three-fifths of Philips monitors, and having received all this business at its disposal, it will be able to achieve significant savings by increasing production.^[9]

Combining Consumer Electronics and Appliances into the Consumer Lifestyle Sector

On January 1, 2008, a new sector was created - Philips Consumer Lifestyle (Philips Consumer Goods), formed by the merger of the Consumer Electronics and Household Appliances divisions.

Today, this sector combines the following activities:

• household electronics - 38.7%
• medical solutions - 24.1%
• household appliances - 11.1%
• I&EB + GMS — 3,4 %
• lighting solutions - 22.7%

Turnover in 2007 amounted to 13.33 billion euros (about 50% of the turnover of the entire company).

The sector employs 25,000 employees worldwide in more than 49 countries.

In the global electrical market, Philips Consumer Lifestyle is represented by the following product categories:

• air purifiers
• portable media players
• PC periphery
• Home video and cinemas
• DVD and Video
• televisions and projectors
• audio/video media
• kitchen appliances and clothing care appliances
• personal care devices
• devices for mothers and babies

2007: Sale to the Chinese of the mobile phone division

In 2006-2007, Royal Philips Electronics gradually sold its mobile phone division to China Electronics Corporation (CEC). CEC was awarded the right to use the Philips brand for five years.

2005: Leadership in the number of patents

In 2005, Phillips received 2,404 patents in Europe and 874 patents in Taiwan, about twice as many as Samsung or Sony.

1998: Philips Design spun off into a separate division

In early 1998, Philips Design became an independent division within the Philips group of companies, capable of not only serving the group's enterprises, but also customers outside of it.

1996: Establishment of a joint venture with China's SED Industry

On October 25, 1996, the subsidiary of the CES Corporation - SED Industry (Shenzhen) with the Dutch firm Philips creates a joint company Philips-SED Consumer Communications (Shenzhen), on December 28, 2001 renamed Shenzhen Sang Fei Consumer Communications.

1991

Renaming to Philips Electronics

In 1991, N.V. Philips Gloeilampenfabrieken was renamed Philips Electronics N.V.

Stefano Marzano ushers in a new era in design

In 1991, Stefano Marzano replaced Robert Blaich as senior director. Philips began a new era in design, development and presentation of a new vision and mission.

The new vision and mission involves creating value for people through what the company called "High Design Excellence." High design excellence is a human-centered, interdisciplinary research approach to design that allows you to quietly embed the design process into the process of creating a business. In order to highlight this shift from iron orientation to human orientation, the name of the Concern Industrial Design Centre (CIDC) bureau was changed to Philips Design.

1990: Development of own DVD format

In 1990, Philips developed its DVD format, which was later brought to the common denominator, because at the same time its format was invented in Japan. The DVD has become the fastest-growing consumer electronics category in human history.

1983: Philips and Sony bring CD to market

In 1983, Philips, together with Sony, launched a CD.

1980: Design as a Tool in Competition

In 1980, American Robert Blaich was appointed director of the Design Bureau. He believed that the design of any product or means of communication should, above all, satisfy the consumer. He understood products as "official company image messages," and design became an effective tool in competition. Blache pointed to the need to fully integrate design and ergonomics into the product development, manufacturing and sales process.

1971: Fritz Philips took over the company

Until 1971, the concern was led by members of the Philips family, the last of which was Fritz Philips (son of Anton). Fritz Philips joined the management of the company at the age of 25, and during the Second World War he was arrested for unwillingness to cooperate with the German invaders. In the post-war period, thanks to his company development policy, the family enterprise turned into a leading global concern. In 2005, Fritz Philips died at the age of 100.

1963: Development of the first audio cassette

In 1963, Philips developed the first compact audio cassette.

1960: Creation of the Bureau of Industrial Design

The idea that design should have an impact on production policy in order to control the quality of products produced on a global scale originated in the bowels of Philips in the 1960s.

Due to the rapid growth of the company and a corresponding increase in the assortment, the risk that national and product divisions will produce products of their own design has increased. It was necessary to approve a single design of Philips products. To this end, the Board of Directors in 1960 formed the Concern Bureau Vormgeving, which was headed by Rein Veersema.

With the arrival of Norwegian Knut Yran, the name "Concern Bureau Vormgeving" changed to "Concern Industrial Design Center" (CIDC).

Having become the new director of the design division, Airan introduced a systematic approach to the development of design, the so-called "Design Track." The approach was based on a process conditionally divided into two phases. In the first phase, the briefing phase, research, information gathering and even in-depth study were carried out, if required by the second phase - the phase of direct design development.

Iran also owns the authorship of Philips' "corporate identity," which was based on writing mandatory standards for all aspects of visual design. The goal was to increase efficiency, secure the legal position of the company's brands and create its image.

1948

1925: The emergence of the direction of advertising for mass goods

Philips became interested in design issues in the late 1920s, when it was decided to start mass production of consumer goods. For the first time, advertising was needed to penetrate the mass market.

In 1925, Louis Kalff joined the advertising section of the company, becoming responsible for the artistic aspects of advertising, products and even architecture. The Kalff-led advertising section was tasked with coordinating advertising companies, which were supposed to take into account differences in consumer tastes around the world. The section was also responsible for product design, but decisions on the release of new models were still made with an eye more on technological innovations and market assessment, the form was considered secondary.

1918: Medical Device Business Start-up

Philips' medical activities began in 1918, when the company first introduced a medical X-ray tube. By 1933, the company was manufacturing medical X-ray equipment in Europe and the United States.

1916: The right of the enterprise to be called royal

"Philips gluylampenfabricated NF" ("Philips Electrolamp Plants") gained fame in the country, and already in 1916 Queen Wilhelmina of the Netherlands granted the Philips enterprise the right to be called royal - with the prefix "Koninklek."

Gerard and Anton Philips were able not only to create a powerful production, but also showed the world an example of new relationships in business. Their motto - "Zyfras are important, but people are more important" - is invariably observed in the concern from generation to generation. In 1999, in the Netherlands, the brothers posthumously received the title "the best entrepreneurs of the 20th century."

1898: Russia's biggest deal

In 1898, Anton Philips, one of the brothers of the founders of the company, went on his first foreign trade tour and came to Russia by train from the Netherlands. With him, he brought samples of incandescent lamps in the hope of concluding an agreement with the tsar to use Philips lamps in lighting the Winter Palace.

This trip to Russia was the impetus for a sharp increase in Philips export activity at that time. Anton Philips was able to sell tens of thousands of lamps during a 27-day trip along the Trans-Siberian, but the order for the Russian tsar was a more significant step forward for Philips. Only one of these orders for 50,000 lamps accounted for 50% of Philips' total sales per year and served as an excellent start for Philips' business in Russia.

1891: Founding of the Company

Philips was founded in 1891. Its founders are the engineering brothers Gerard and Anton Philips, who opened a small factory in the city of Eindhoven for the production of electric lamps with a staff of 10 people and a capacity of 100-200 lamps per day.

In 1895, after the acquisition of the CHF Muller of Hamburg, the first commercial X-ray tube was launched on the market.

Notes