Philips and Dell enter $5 billion alliance

Royal Philips Electronics and Dell have entered into a global strategic alliance that could be worth up to $5 billion over the next five years.

The agreement calls for Philips to supply cathode-ray tube and flat-panel monitors, storage devices, connectivity solutions, and other components to Dell for use in computer systems. For its part, Dell will become a preferred world-wide supplier to Philips of industry-standard server and data-storage products, workstations, and personal computers.

Dell will also market and sell a comprehensive range of Philips-brand computer peripherals, along with related products.

The companies will also collaborate on technology planning, marketing, and optical-storage standards.

Additional financial terms were not disclosed.