recycling | - Part 2

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Integrators and other business partners say the iPod/iPad wasn’t to blame for the demise of Philips Pronto; why didn’t Philips try harder to find a buyer?

How hard did Philips try to sell its Pronto remote-control division?

Some of the major vendors in the CE pro channel never heard from the company, which announced last week it was closing its Pronto business unit.

When contacted by CE Pro, many of the obvious acquisition partners said Philips never approached them about buying the Pronto operation or its intellectual property. Why is that?

The closure of the Pronto division strands thousands of CE pros – including integrators and manufacturers – who invested in product training and software development, not to mention inventory.

While these customers need not be the concern of Philips, which must answer to shareholders, their commitment to the Pronto line suggests that a buyer could be found if Philips tried a little harder. Indeed, some potential buyers are scrambling now to inquire about the Pronto IP.

Replying by email to several questions posed by CE Pro, Philips had virtually nothing to say about the demise of Pronto, except that it was (understandably) too niche of a line for the Philips Consumer Lifestyle portfolio.

Is the IP still available for sale?

“There is no news right now on how Philips will use its IP and trademarks related to the Pronto business.”

Was the iPad/iPod to blame? Were Pronto price increases to blame?

“No, this was a strategic decision made by Philips. Philips derives its primary strategic strength from a broad and globally divided distribution network for its consumer products. We see very few opportunities for growth for Pronto in the future portfolio of Consumer Lifestyle products. Philips must make choices regarding which strategic markets it will invest in, and the niche market for Pronto products is not one of these.”

And so on.

So What Happened to Pronto?

Since Philips isn’t talking, we are left to our own speculation about why Philips closed Pronto and why a buyer wasn’t found.

The obvious question is: Did the iPod/ iPad kill Pronto?

Probably not, according to industry insiders interviewed by CE Pro.

More likely, Philips Pronto became too expensive, versus similar products from Remote Technologies Inc. (RTI), URC, Universal Electronics Inc. (UEI Nevo) and even Control4.

Philips is based in the Netherlands. Most of the Pronto business, including manufacturing, takes place in Belgium. Philips tried to shift Pronto manufacturing to Asia, but the company continued to build product more expensively in Europe. There is some speculation that agreements within the European Union hindered Philips’ ability to build Pronto products overseas.

Last year, Philips raised wholesale prices across the Pronto product line by as much as $200.

“I think Pronto couldn’t compete in the marketplace anymore,” says Richard Scholl, CEO of Worthington Distribution, a large Pronto distributor serving the custom integration market.

Scholl says Pronto business dropped substantially last year after the price increase, and not because of competition from the iPod or iPad.

Had Pronto kept prices down, in line with its competitors, it would have made a “major difference,” Scholl says.

According to Scholl, distributors have the opportunity to buy Pronto inventory until November 29, 2010, after which Philips will no longer accept orders.

Philips says it will continue to “fulfill its warranty obligations.”

It still leaves us wondering: Why didn’t Philips reach out to the usual suspects before shutting its doors?

By Julie Jacobson

Custom Installation Services, LLC – We specialize in fixing the $99 TV install by our “competitors”!

When you purchase a new HDTV from C.I.S., we will take your old TV for recycling!

Big box retailers don’t help much, but there are plenty of other options.

Still have an old CRT TV you want to get rid of and replace with a shiny new HDTV?

You should definitely look to recycle your old TV, but where? A report on HDguru.com lists the lack of in-store recycling options by big-box retailers such as Walmart, Sam’s Club, Costco, and the like. Walmart has partnered with Samsung for recycling Samsung products, and Sam’s Club has a trade-in program through EcoNew.

According to HD Guru, Best Buy charges $10 fee for each in-store TV (or monitor) dropped off at a Best Buy location and will offset that by giving you a $10 Best Buy gift card in exchange. (Does anything actually cost $10 or under at Best Buy?)

Yes, there is a dearth of recycling options at the big stores. But there are plenty of other recycling options, which we have detailed in previous posts:

Check the Electronics Takeback Coalition’s Guide to Recycling Your Electronics. There’s also a chart comparing what can be recycled in each state, and a summary of state programs and pending legislation.

Find listings of local e-waste collection sites at E-Cycling Central and manufacturer programs and other options at the Consumer Electronics Association’s Digital Tips site.

Sony has a free take-back program in conjunction with Waste Management, at locations throughout the country. MRM (Electronic Manufacturers Recycling Management Company), a joint venture between Panasonic, Toshiba and Sharp, offers 640 locations for recycling. Last year Mitsubishi joined the program, and MRM says most of its drop-off sites accept all types and brands of consumer electronics for recycling.

Look for hazardous waste collection days in your community. Many cities and towns sponsor these for their residents to dispose of electronics, appliances and household chemicals, through a recycling company.

You can also ensure a TV or other device will be recycled or reused when you purchase it, through TechForward’s buy-back program that locks in a value for your product upon its purchase and depending on how long you keep it. The product is then resold, reused or recycled responsibly.

Also, make sure any recycler or e-cycler recycles responsibly. Many electronics recyclers ship the products to developing countries, where they are often disassembled dangerously, exposing children and low-wage workers to toxic metals such as chromium, cadmium and mercury. In some of the world’s poorest communities, the plastics in electronics are burned in pits, causing medical and environmental hazards.

Some e-cyclers have take a pledge from the Basel Action Network (BAN) to recycle responsibly and not ship old electronics overseas. BAN now has an e-Stewards certification program for electronics recyclers to ensure that discarded electronics containing toxic materials aren’t being shipped overseas and disassembled. You can see a map of responsible recyclers meeting the requirements.

by Steven Castle

http://www.electronichouse.com/article/tv_recycling_what_to_do/

Custom Installation Services, LLC – ”We may be a few dollars more than the competition, but we are a million times better”.