"In a desperate move to inject profitability into their struggling TV operation Philips has moved away from manufacturing their own TV's to outsouring over 70% of their range to Chinese and Taiwanese TV manufacturers. Last week Philips was also forced to sell down their shareholding in a joint venture with LG Philips in an effort to raise capital for their struggling TV division." Smarthouse News has the full story here.

Update- Smarthouse pulled the article, as J noted. Maybe Phillips isn't so desparate. Here's what's left of the google cache....

LCD

Desperate Philips Outsource Over 70% LCD TV Production

David Richards - Monday, 28 January 2008

In a desperate move to inject profitability into their struggling TV operation, Philips has moved away from manufacturing their own TVs to outsourcing over 70% of their range to Chinese and Taiwanese TV manufacturers. Last week Philips was also forced to sell down their shareholding in a joint venture with LG Philips in an effort to raise capital for their struggling TV division.

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Philips announced in October last year that it would reduce its shareholding in the LG Philips business from 33 per cent to 19.9 per cent, however it has now been reported that the company is reducing its stake further to a measly 2-3%.

The reduced stake will spare Philips about $3 billion – money that will probably be used toward proceedings to streamline the company's product offering.

Reuters recently quoted a Japanese business publication as saying Philips president, Gerard Kleisterlee, said it would sell its shares after the stock market recovers,...