Philips Lighting Factory Surabaya

The foundations of Philips were laid in 1891 when Gerard Philips and his father Frederik Philips established Philips & Co. in Eindhoven, the Netherlands. A few years later, in 1895, Gerard's brother Anton Philips strengthened the young company. He proved to be a great commercial talent and within a few years Philips belonged to the largest producers of light bulbs in the world. Stimulated by the Industrial Revolution in Europe, Philips’ first research laboratory was established in 1914 and the company started introducing its first innovations in the x-ray and radio technology. Over the years, the list of inventions has only been growing to include many breakthroughs that have continued to enrich people’s everyday lives.

1891 – 1915 From Light Revolution to Product Evolution

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Philips began by making carbon-filament lamps and, by the turn of the century, was one of the largest producers in Europe. As developments in new lighting technologies fueled a steady program of expansion, in 1914 it established a research laboratory to study physical and chemical phenomena and stimulate product innovation.

1915 – 1925 Innovation and Diversification: X-rays and Radio Reception

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In 1918, Philips introduced a medical X-ray tube. This marked the beginning of the diversification of the company’s product range and the moment when it began to protect its innovations with patents in areas stretching from X-ray radiation to radio reception.

1925 – 1940 First Televisions and Electric Shavers

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In 1925, Philips became involved in the first experiments in television and, in 1927, began producing radios. By 1932, Philips had sold one million of them and had become the world’s largest radio producer. A year later, it produced its 100-millionth radio valve and started production of medical X-ray equipment in the United States. By 1939, when it launched the first Philips electric shaver, the company employed 45,000 people worldwide.

1940 – 1970 Technology Breakthroughs: Introduction of Compact Audio Cassette

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Science and technology underwent tremendous development in the 1940s and 1950s, with Philips Research inventing the rotary heads that led to the development of the Philishave electric shaver, and laying down the basis for later ground-breaking work in transistors and integrated circuits. The company also made major contributions to the development of the recording, transmission and reproduction of television pictures. In 1963, it introduced the Compact Audio Cassette. In 1965, it produced its first integrated circuits.

1970 – 1980 Continued Product Innovation for Images, Sound and Data

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The flow of exciting new products and ideas continued throughout the 1970s. Research in lighting contributed to the new PL and SL energy-saving lamps, while Philips Research made key breakthroughs in the processing, storage and transmission of images, sound and data. These led to the inventions of the LaserVision optical disc, the Compact Disc and optical telecommunication systems. In 1972, the company co-founded PolyGram (Philips 60% and Siemens 40%), the enormously successful music recording label. In 1974, it acquired Magnavox and in 1975, Signetic, both in the United States.

1980 – 1990 Technological Landmark: the Compact Disc

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In 1983 Philips came with a technological landmark: the launch of the Compact Disc. Other milestones of the time included the production of Philips' 100-millionth TV set in 1984. The business expanded in the 1980s through the acquisitions of GTE Sylvania's television concern and Westinghouse's lamps business. 

1990 – 2000 Changes and Successes: Introduction of DVD

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The 1990s was a decade of significant change for Philips. The company carried out a major restructuring program to return it to a healthy footing, simplifying its structure and reducing the number of business areas. Some of the businesses continued performing well and by 1995, Philips had sold 300 million Philishave electric shavers. Building on the success of its Compact Disc technology, in 1997 Philips cooperated with Sony to introduce another innovation that became the fastest growing home electronics product in history: the DVD.

21st Century: Philips Today

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Moving into the 21st century, Philips continued to change and grow. Long aware that for many people Philips was no more than a consumer electronics producer, the company started projecting a new image that better reflected its products in the areas of Healthcare, Lifestyle and Technology. In 2004 Philips unveiled its new brand promise of “sense and simplicity”. Underlined by a sizeable advertising campaign, the company confirmed its dedication to offering consumers products that are advanced, easy to use and designed to meet their needs.

In September 2006, Philips sold 80.1% of its Semiconductors business to a consortium of private equity partners. This laid the foundation for a strong and independent new semiconductors company, named NXP, which was founded on the heritage of over 50 years of innovation at the heart of Philips. The sale marked a further milestone in the shift from cyclical activities to building of an applications-focused company, centered around innovation and its brand promise of “sense and simplicity”.

In September 2007, Philips communicated its Vision 2010 strategic plan to further grow the company with increased profitability targets. As part of Vision 2010, the organizational structure was simplified per January 1, 2008 by forming three sectors: Healthcare, Lighting and Consumer Lifestyle. These steps further position Philips as a market-driven, people-centric company with a strategy and a structure that fully reflect the needs of its customer base. With this set of businesses, Philips aims to build the leading brand in Health and Well-being.

 

In 2011, Philips embarked on a multi-year transformation program Accelerate! to create an agile, customer-centric and entrepreneurial company. The change and performance program has five key elements -- customer centricity, resource to win, seamless End2End customer value chains, culture and operating model. A key goal of the program is to enable Philips to introduce new innovations, tailored to the local needs, faster in the markets that we operate in throughout the world, creating more value for the company.