AMSTERDAM, Netherlands - Royal Philips Electronics NV said Wednesday it struck a five-year deal to supply components to Dell Computer Corp., giving Europe's largest consumer electronics maker an important boost in the United States. <br>
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Philips said the deal could raise its sales by $5 billion over the next five years, based on expected 25 percent annual growth. The company didn't give a forecast for the potential profit of the deal. <br>
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Analysts said the deal proved Philips' strength in several component segments, and was a good chance for the company to raise its profile in the U.S. market. <br>
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Under the agreement, Philips will supply Dell -- the world's largest maker of personal computers -- with cathode ray tubes and flat-panel screens, as well as storage devices, such as CD-ROMs, and "connectivity devices" capable of creating local wireless computer networks. <br>
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Dell, based in Round Rock, Texas, will market Philips-branded computer "peripherals," such as web-cams. <br>
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Chief executive Gerard Kleisterlee said Wednesday's agreement was "positive - not only in terms of technology, but also in improved marketing, especially in the U.S." <br>
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Kleisterlee earlier said Philips will withdraw from selling consumer electronics in the United States if operations cannot be made profitable. <br>
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Meanwhile, the Dutch workers of Philips have threatened to strike on Thursday after the company said it has no intention of meeting workers' demands for a 3.5 percent pay rise. <br>
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