Philips Announces Deal with Dell Computer
Royal Philips Electronics NV (Amsterdam, the Netherlands) announced that it has struck a five-year deal to supply components to Dell Computer Corp. (Round Rock, TX). Philips said the deal could raise its sales by $5.0 billion over the next five years, based on expected 25-percent annual growth. The company didn't give a forecast for the potential profit of the deal.
Under the agreement, Philips will supply Dell with cathode ray tubes and flat-panel screens, as well as storage devices such as CD-ROMs and "connectivity devices" capable of creating local wireless computer networks.