Netherlands-based electronics giant Philips Electronics NV is mounting a new campaign to become one of the top three vendors to the global cellular handset market.
Philips Mobile Phones launched a new business group in January called Philips Consumer Communications based in Le Mans, France. The venture is led by General Manager Mike McTighe, a former vice president at Motorola Inc.
The company just broke ground on a plant in Singapore to serve the Asia-Pacific region. Manufacturing will begin there in September, according to company spokesperson Ellen de Vries.
Philips initially will manufacture products for Global System for Mobile communications networks but will produce handsets for other standards beginning next year, de Vries said. “We are a technology neutral company and will build for whatever the market demands.”
Philips Consumer Communications introduced its first cellular product, a lightweight phone called “Fizz,” at the CeBIT ’96 trade show in Hanover, Germany in March.
While the handset price varies by country, de Vries said Philips is targeting the consumer market. “It is produced for entry-level pricing,” she said.
Although Philips initially is focusing on the European and Asia-Pacific GSM markets, it has plans for the United States as well.
“We won’t become one of the three largest handset manufacturers without pursuing all major markets, including the U.S.,” de Vries said.
The company has not announced any U.S. deals yet but is in the process of setting up a sales organization and will introduce Philips brand phones into the U.S. market next year, she said.
Just trying to survive in today’s cellular handset market has become too tough for many manufacturers, let alone trying to join the top three, but Philips believes it has a lot of advantages stemming from its electronics business. The company already produces its own liquid crystal display screens, battery technologies and chipsets.
Philips has established strong global distribution channels in consumer electronics as well as a strong brand name, de Vries added.
