Diversified health and well-being company Koninklijke Philips N.V. PHG is making some concerted efforts to strengthen its lighting business for greater profitability. In what can be called a sly marketing attempt, the company recently declared a special offer for its Philips Hue light users to synchronize their home lighting with one of the most iconic festive frenzies, the Times Square Ball drop.
A trusted lighting partner of the event for 16 years, Philips has added a new feature “Hue Fireworks” in the Philips Hue app that will allow consumers to sync their Philips Hue lights to the Ball as it drops. Priced at $1.99, the Hue Fireworks app is available in both Apple AAPL and Android stores. Additionally, with Hue Fireworks, consumers can illuminate their households with over 16 million colors and access more than 450 third-party apps.
Other Innovations
Apart from developing new apps, Philips has embarked on a few ambitious lighting projects this month. It has launched “Luminous Patterns”, a connected LED lighting system, which is expected to gain significant popularity among architects and designers. These decorative panels are not only beautiful but also energy-saving and cost-effective, and will be suitable for use in bars, restaurants, retail stores, hotels and office lobbies.
This apart, the company has entered into strategic “Philips Friends of Hue” partnership with multiple technology giants, including Apple, Bosch, Logitech LOGI and Samsung SmartThings, to promote connected lighting. Through these collaborations, Philips plans to integrate Philips Hue with the connected home products, applications and platforms of its partners to expand customer base. Logitech has integrated Philips Hue with its Harmony platform, thereby allowing customers to use a single remote for operating lights, T.V. and other entertainment applications. Similarly, Samsung’s SmartThings smart home platform will integrate Philips Hue lights for controlling a gamut of applications like sensors, locks, cameras, thermostats, speakers and others.
Also, Philips, in collaboration with smartphone maker Xiaomi, recently launched EyeCare connected desk lamps that can adjust the intensity of lights according to different uses. In addition, Philips is running a pilot project to develop 50 Philips SmartPoles, which combine energy efficient LED lighting with Ericsson’s ERIC 4G LTE wireless technology.
Moving Forward
These innovations have a common denominator, i.e. Philips’ connected lighting technology. The company believes that surging demand for connected lighting reflects the changing preferences of consumers. Echoing Philips’ sentiment, market reports suggest that smart lighting market is projected to grow at a CAGR of 22.07% during 2015–2020 and reach the $8.14-billion mark by 2020.
Adoption of smart lighting solutions across industrial, commercial, public and government buildings are adding to this growth. Though commercial and industrial segments presently dominate smart lighting markets, residential markets hold the highest growth potential. We believe this Zacks Rank #3 (Hold) stock’s recent endeavors will serve to boost its competitive position in the lighting business.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment