Philips: Fifty Years of Innovative Research is Worth the Price

Royal Philips, or more commonly known as Philips, is an Amsterdam-based diversified technology company. Its diversity is well demonstrated through its segments: Lighting, Consumer Lifestyle and Healthcare. After the company was founded by Gerard Philips in 1891, Philips is now one of the world’s largest electronics companies. It has more than 122,000 employees in 60 countries.

Philips started in a factory building in Eindhoven. In this small factory, the father-and-son tandem of Frederik and Gerard started producing carbon-filament lamps and other electronic products. Four years into the business operations, Philips was on the brink of bankruptcy. Gerard’s younger brother  Anton was brought into the company. Anton worked as sales representative. But his background in engineering was more useful in making important business decisions. Anton’s arrival expanded the company rapidly and the Philipses could not avoid the founding of the Philips Metal Filament Lamp Factory Inc. in 1907 and the Philips Lightbulb Factories Inc. in 1912. Gerard and Anton laid down the solid foundation of the family’s business and set the course on the company into a multinational electronics company that it is today.

But the company’s biggest break in its 120-year lightbulb manufacture history came recently after more than 50 years of innovative explorations of LEDS. The company is leading the new revolution for a new generation of hyper-efficient LED lamps. After half a century of grueling research and study, Philip’s LED lamps are transforming not only homes but many industries such as healthcare, urban safety and agriculture.

The introduction of LED significantly reduced the consumption of electricity in the US by 50%. This figure translates to $250 billion per year. The scaling LED technology has dropped the retail prices of LED from $40 in 2010 to $10 this year. With a consumption of just 11 watts of power, the LED technology can produce light for at least 20 years.

This technology is not limited to energy efficiency alone. LED’s interactivity coupled with the Philips Hue system allow the users to adjust the colors emitted by the bulbs to meet certain purposes. The technology also allows remote access and control because the technology can be managed through the smartphone anywhere.

In a very effective fashion, Philips used its experience and expertise to produce what could be the most sustainable energy saving technology ever invented.