Philips

Koninklijke Philips N.V., commonly known as Philips, is a Dutch multinational conglomerate founded in Eindhoven in 1891 by Gerard Philips and his father Frederik. The company, which originally specialized in producing light bulbs, expanded throughout ized in producing light bulbs, expanded throughout the 20th century into one of the world’s leading electronics corporations, pioneering many consumer innovations such as the compact cassette and compact disc, and offering a vast range of products including kitchen appliances, electric shavers, televisions, and lighting systems. Headquartered in Amsterdam since 1997 while retaining its Benelux base in Eindhoven, Philips was granted its royal honorary title in 1998. At its peak, Philips not only dominated consumer electronics but also became a significant player in the entertainment industry through its ownership of PolyGram. However, the latter part of the 20th century saw increasing competition from East Asian manufacturers, prompting Philips to gradually downsize and restructure. This included divesting from its lighting and consumer electronics divisions and refocusing its core business around healthcare technologies. As of 2024, Philips is streamlined into three primary divisions: Diagnosis and Treatment, which produces advanced medical imaging devices like MRI, CT, and ultrasound scanners; Connected Care, which includes products such as patient monitors and respiratory therapy devices under the Respironics brand; and Personal Health, covering personal care and wellness products like Sonicare electric toothbrushes, Avent childcare items, and electric shavers. Philips is listed on the Euronext Amsterdam stock exchange and is a constituent of the Euro Stoxx 50 index, with a secondary listing on the New York Stock Exchange. Its historical acquisitions include notable companies such as Signetics and Magnavox, reflecting a legacy of innovation and technological influence. Beyond the business world, Philips has been deeply involved in sports, particularly in the Netherlands, where it established the Philips Sports Vereniging (PSV) in 1913 to mark the centennial of Dutch independence. The club, now best known for its top-tier football team PSV Eindhoven and its swimming division, remains closely linked to Philips, with the company holding the naming rights to Philips Stadium, PSV’s home ground. Internationally, Philips has sponsored a variety of sports events and teams, including a renewed Formula One partnership with AT&T Williams in 2008, naming rights for Australia’s National Basketball League through the Philips Championship, and past sponsorships for the Balmain Tigers rugby league team and Indonesian football club Persiba Balikpapan. From 1998 to 2000, Philips also sponsored NASCAR's Winston Cup No. 7 entry for Geoff Bodine Racing and Ultra Motorsports, with drivers like Geoff Bodine and Michael Waltrip. For nearly two decades, from 1999 to 2018, Philips was associated with Philips Arena in Atlanta, home of the NBA's Atlanta Hawks and previously the NHL's Atlanta Thrashers. In 2024, Philips extended its global sports involvement by becoming a sponsor of FC Barcelona, one of the most prominent football clubs in Spain's La Liga. Beyond sports, the company has supported cultural events like the international Philips Monsters of Rock festival. Despite its success and prominence, Philips has faced serious challenges in recent years, particularly surrounding its Respironics division. In June 2021, the company issued a massive voluntary recall of approximately 3 to 4 million CPAP, BiPAP, and ventilator machines due to a hazardous defect in the sound-dampening foam used in these devices. The foam was found to deteriorate over time, releasing potentially toxic particles and chemicals that could be inhaled by users, posing risks Philips initially labeled as “potentially life-threatening.” Although the company stated at the time that there had been no confirmed deaths, the U.S. Food and Drug Administration (FDA) later received 385 reports of death allegedly linked to the defect. Investigative reports in 2023 by ProPublica and the Pittsburgh Post-Gazette revealed that Philips had been aware of foam degradation issues as early as 2010, with thousands of patient complaints and returned machines accumulating over the years—many of which were never reported to the FDA, in violation of regulatory requirements. In response to growing legal and public pressure, dozens of individual lawsuits were consolidated into a single class-action lawsuit in October 2022. Philips ultimately agreed to a settlement in September 2023, valued at a minimum of $479 million. As scrutiny continued, the company reached a significant agreement with the FDA in January 2024 to halt all sales of new sleep apnea devices in the U.S. market. This agreement also required Philips to meet stringent new standards across its American manufacturing facilities—a process projected by CEO Roy Jakobs to take between five and seven years. Despite these setbacks, Philips continues to operate as a leader in global healthcare technology, driven by a long legacy of innovation, a commitment to health and wellness, and a global footprint that spans medical devices, personal health products, and technological infrastructure. The transition from its consumer electronics roots to a healthcare-focused model reflects not just the company’s resilience but also its capacity to adapt to rapidly evolving global markets and regulatory landscapes, while its involvement in sports, entertainment, and cultural sponsorships highlights a continued investment in brand identity and public engagement worldwide. ...view more