Philips keen on mobile handset market in IndiaCHENNAI: Philips Electronics, a subsidiary of Netherlands-based Royal Philips Electronics is keen on the mobile handset market in India.
Highly placed officials told CyberMedia News that the company is interested to regain its lost position in the handset market by reentering it in the next couple of months.
“Philips will be launching four or five new models in the coming months, targeted at the mid-segment and all would be priced in the Rs 7, 000 to Rs 12, 000 price range,� they said, adding that to keep the price level-low, the company has signed up with China Electronic Corporation (CEC) for manufacturing and marketing of the handsets in Philips brand name.
The company had signed a Letter of Intent (LoI) to transfer its remaining mobile phone activities with CEC, about a week back.
According to the terms of the agreement CEC will take over the responsibility for Philips’ Mobile Phones business, which currently has an annual turnover of approximately €400 million and approximately 240 employees, mainly in Asia Pacific and Eastern Europe.
Under the terms of the letter of intent, CEC will receive a global license to market and sell mobile phones under the Philips brand for the coming five years.
However, the transaction is still subject to confirmatory due diligence. The transaction will be conditional on all required shareholder, government and regulatory approvals and consents and is to be completed by the end of 2006.
Source- http://www.ciol.com
