**Philips CEO Highlights North America's Growth Amidst China Market Challenges**

Despite a sluggish market in China, the North American sector has emerged as a key driver of growth for Philips, according to CEO Roy Jakobs. In a recent interview with Yahoo Finance, Jakobs emphasized the strong order flow and robust sales momentum in North America, driven by an increasing demand for innovative medical solutions in hospitals.

"In North America, particularly, we see a strong order flow and sales momentum because hospitals are in need of innovation due to staffing shortages," Jakobs explained. The innovations referred to by Jakobs include advanced artificial intelligence (AI) connected medical devices designed to expedite clinicians' workflows and accelerate image processing for patient diagnoses.

The company’s performance in the North American market, especially the United States, has been bolstered further by pressures on major health insurance companies. These companies have faced margin squeezes due to increased utilization as lingering demand from the pandemic continues to impact hospital systems. Notably, Philips recently received FDA clearance for incorporating AI in enhanced cardiovascular ultrasounds.

Comparatively, Jakobs noted a downturn in medical device use and sales in hospitals throughout 2022, with 2023 witnessing a slight recovery and emerging as the strongest year post-pandemic. "The number of procedures is growing, the demand for imaging is increasing, and regrettably, waitlists remain long," he observed about the North American market.

Jakobs also highlighted that other countries are turning to innovative solutions to address doctor shortages and modernize aging systems. Meanwhile, despite current challenges, Jakobs remains optimistic about a market recovery in China, a country Philips has been deeply involved with for a long time. "We believe China will rebound; it's not a matter of if, but when," he reiterated, echoing his earlier statements.