Philips owned 60% of the joint venture, with Lucent owning the other 40%. PCC was a global venture, with branches in more than 100 countries, including the US, Latin America, Asia-Pacific and Europe.[1]
History
The joint venture was formed on October 7, 1997 in Parsippany, New Jersey by Lucent Technologies and Philips to create mobile and landline phones. The company consisted of the consumer communications equipment businesses of both companies. Both companies made products in the venture, often not sold under their own names. Philips Consumer Communications produced the following equipment:
digital/analog cellular phones – sold under Philips brand
pagers/cellular telephones – sold under both Lucent/Philips brands
Eventually, all telecommunications products made in the venture would have been sold under the Philips brand.[citation needed]
In 1998, Lucent and Philips announced it would dissolve its joint venture, after garnering only a 2% market share in mobile phones and losing $500 million on a revenue of $2.5 billion.[1] Both companies initially re-absorbed their respective assets in the joint venture, but Lucent subsequently sold off its parts to VTech and Motorola.[2][3]
References
1 2 Bois, Martin Du; Mehta, Stephanie N.; Naik, Gautam (1998-10-16). "Philips, Lucent Prepare to End Their Struggling Joint Venture". Wall Street Journal. Retrieved 2015-08-07. ...expected to lose about $500 million this year on sales of $2.5 billion ... has a scant 2% of world-wide market share for cellular phones.
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