Philips is gradually withdrawing from the television manufacturing market, hiving off 70 per cent of its TV business to Hong Kong monitor company TPV Technology.

While the Dutch consumer electronics and lighting firm will retain 30 per cent of the venture, TPV Technology will operate the business in a majority of the markets, excluding China and the US. Philips will also have the option to sell its remaining percentage to TPV within the next five years.

It's a staggering move by the manufacturer, who has long had a presence in the television market and was one of the initial companies experimenting with the technology back in 1925, with the first public viewing of a Philips TV three years later, in 1928.

However, it has been common knowledge that the company has been falling behind rivals such as Samsung and LG in market share, and its TV business has suffered losses of almost Euro 1 billion (£880 million) since 2007. It has also been reported that the TV arm made an Euro 87 million net loss in the first quarter.

It seems that the joint venture, therefore, was one of few options available to the company: "Finding a solution for our television business was our top priority and we strongly believe that the intended 30 per cent / 70 per cent joint venture with TPV that was announced today will enable a return to profitability for the television business, and an increased portfolio focus for Philips in health and wellbeing," said chief executive Frans van Houten.