Philips demonstrates the compact disc publicly for the first time.

The compact disc (CD) is a digital optical disc data storage format that was co-developed by Philips and Sony to store and play digital audio recordings. In August 1982, the first compact disc was manufactured. It was then released in October 1982 and branded as Digital Audio Compact Disc.

The format was later adapted for storage of data (CD-ROM). Several other formats were further derived from these, including write-once audio and data storage (CD-R), rewritable media (CD-RW), Video CD (VCD), Super Video CD (SVCD), Photo CD, Picture CD, Compact Disc-Interactive (CD-i) and Enhanced Music CD.

Standard CDs have a diameter of 120 millimetres (4.7 in) and are designed to hold up to 74 minutes of uncompressed stereo digital audio or about 650 MiB of data. Capacity is routinely extended to 80 minutes and 700 MiB by arranging data more closely on the same sized disc. The Mini CD has various diameters ranging from 60 to 80 millimetres (2.4 to 3.1 in); they are sometimes used for CD singles, storing up to 24 minutes of audio, or delivering device drivers.

At the time of the technology's introduction in 1982, a CD could store much more data than a personal computer hard disk drive, which would typically hold 10 MiB. By 2010, hard drives commonly offered as much storage space as a thousand CDs, while their prices had plummeted to commodity level. In 2004, worldwide sales of audio CDs, CD-ROMs, and CD-Rs reached about 30 billion discs. By 2007, 200 billion CDs had been sold worldwide.

Koninklijke Philips N.V. (in Dutch literally 'Royal Philips', commonly shortened to Philips) is a Dutch multinational conglomerate corporation that was founded in Eindhoven in 1891. Since 1997, it has been mostly headquartered in Amsterdam, though the Benelux headquarters is still in Eindhoven.

Philips was formerly one of the largest electronics companies in the world, but is currently focused on the area of health technology, having divested from other divisions.

The company was founded in 1891 by Gerard Philips and his father Frederik, with their first products being light bulbs. It currently employs around 80,000 people across 100 countries. The company gained its royal honorary title in 1998 and dropped the "Electronics" in its name in 2013, due to its refocusing from consumer electronics to healthcare technology.

Philips is organized into three main divisions: Personal Health (formerly Philips Consumer Electronics and Philips Domestic Appliances and Personal Care), Connected Care, and Diagnosis & Treatment (formerly Philips Medical Systems). The lighting division was spun off as a separate company, Signify N.V. The company started making electric shavers in 1939 under the Philishave brand, and post-war they developed the Compact Cassette format and co-developed the Compact Disc format with Sony, as well as numerous other technologies. As of 2012, Philips was the largest manufacturer of lighting in the world as measured by applicable revenues.

Philips has a primary listing on the Euronext Amsterdam stock exchange and is a component of the Euro Stoxx 50 stock market index. It has a secondary listing on the New York Stock Exchange. Acquisitions include that of Signetics and Magnavox. They also have had a sports club since 1913 called PSV Eindhoven.