Bloomberg reports Philips will cede control of its television unit to TPV Technology, a Hong Kong-based contract manufacturer. Philips' TV unit posted a loss of 87 million EUR in Q1 2011.
Royal Philips Electronics NV will cede control of its 80-year-old television unit to an Asian contract manufacturer, joining European conglomerates including Siemens AG scaling back consumer electronics as prices decline.
Philips will bundle its TVs, which the Amsterdam-based company first produced in 1928, into a partnership that will be 70 percent owned by Hong Kong-based TPV Technology Ltd., it said today. Philips will retain the rest and receive royalties of at least 50 million euros ($72 million) annually starting in 2013.