Philips had entered a five-year $5 billion alliance with US computer maker Dell to supply computer components to the world's largest maker of personal computers, the companies said today.
Philips will supply cathode-ray tube and flat-panel monitors, storage devices, connectivity solutions and other components to Dell.
Dell will also become a preferred worldwide supplier to Philips of servers and other computers.
Philips said the agreement could be worth up to $5 billion over the five years based on 25 per cent year-on-year sales growth from the deal.
The two companies will also collaborate on technology planning, marketing, and optical-storage standards. This is the third major alliance that Philips, which is struggling to turn itself around after its worst loss in 10 years in 2001, has signed in recent months. It has inked deals with AOL/Time Warner and Nike.
Philips is Europe's largest maker of consumer electronics and lighting and number three in semiconductors.