If that rumour is true, then
Honestly, Philips' personal electronics have NEVER made a profit for that company, and they're an EXTREMELY tiny part of the company's business (after all, Philips will continue to distribute large-scale consumer electronics and Norelco razors - which account for a FAR larget part of Philips' business - in the U.S.). And Philips is caught in no-man's land, as far as portable electronics are concerned; it is surrounded by the cheap no-name brands (and low-end electronics from the big names Sony and Panasonic) on one side of Philips' price range, and the higher-quality units from those two big names at the high end of that range. (After all, why pay $90 for a top-of-the-line Philips non-MP3 PCDP that doesn't perform any better than a $70 unit from Panasonic or Sony?)
As a result, by the end of this year, there will be no more small electronics (such as PCDPs, boomboxes and clock radios - and headphones, of course) from Philips - other than Norelco razors, Philips will completely discontinue all of its small electrics/electronics.