The CEO of Philips North America Greg Sebasky tells The Daily Ticker they will never have to be replaced during the two-year planned run of the light display.
Philips as a company is making a big bet on consumers and businesses reducing their carbon footprint. “Green” product sales increased to 45% of total sales in 2012, and they have a goal for that number to grow to 50% in 2015.
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If you think that perhaps Philips may have a bridge to sell you, too, given the high profile failings of government subsidized “green” energy companies like solar-panel maker Solyndra and battery maker A123 systems, Sebasky makes a clear distinction about why he thinks PHG’s initiatives are working.
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“I think the green initiatives for us are responding to a need and that can be a local market need,” he says, citing solar-panel-powered lighting in previously dark villages of India and relamped street lights in Boston for the city to save money.
The key distinction here is the emphasis on market demand. “All of our products have to stand on their own from an economic point-of-view," he notes. "Government incentives are good, but they have to stand on their own.”
As for the U.S. consumer still struggling with 7.9% unemployment, high gas prices, an economy growing just 0.1% and now a payroll tax cut that’s expired, is Sebasky worried about their adoption of pricier LED light bulbs?
Sebasky says no, and that the pricing is reaching a tipping point where people will now be able to buy a bulb for $10 as opposed to $35 to $40 previously. It’s an investment he says can add up to a savings of $250 dollars for a family.
Editors note: Yahoo! CEO Marissa Mayer is a patron of the San Francisco bridge project.
Lauren Lyster is the host of The Daily Ticker and Hot Stock Minute. You can follow her on Twitter at @LaurenLyster.
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