The Story of Phillips Company
Gerard Phillips, and his father Frederik, founded the Phillips Company in 1891. Gerard wanted to make carbon-filament lamps, and he sought a loan from a banker who lived in Zaltbommel to get the jumpstart he needed. With his loan, he set up a factory to produce his goods, modest but big enough for machinery and a small crew to work. It took a year for the factory to get off the ground, but Gerard finally opened in 1892. That first factory was held by the company to this day, and is now a museum dedicated to their work.
The first few years of the company’s life were not easy. It faced bankruptcy after difficulty getting their products to market and selling them. Gerard hired his sixteen year old brother Anton to work for him around that time. Anton had earned a degree in engineering, but he took his first job as a sales representative. Young, and a hard worker, he found himself contributing ideas that would help the company succeed.
It was thanks to those ideas and hard work that the company expanded. Phillips opened a factory to produce metal filaments for lamps, and then they began making light bulbs entirely in 1912.
The company became a worldwide brand in 1939, when the two brothers changed the name officially to Phillips Corporation. During the 1920s, the company expanded its production line to include vacuum tubes and an electric razor. Today, you can still buy a Phillishave in the form of a “Norelco” razor. But the major money maker for Phillips came with the invention of the Chapel radio in 1927.
About the Author: Samuel Phineas Upham is an investor at a family office/ hedgefund, where he focuses on special situation illiquid investing. Before this position, Phin Upham was working at Morgan Stanley in the Media and Telecom group. You may contact Phin on his Samuel Phineas Upham website or LinkedIn.