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IT BenQ-Siemens Closes Down
Marcus Yam (Blog) - October 1, 2006 6:42 PM
Print 8 comment(s) - last by MobileZone.. on Oct 4 at 3:36 AM

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Auf Wiedersehen, Hello Kitty phone

Taiwanese owned BenQ announced that it has ceased funding its German-based mobile-phone subsidiary. Shortly after the announcement, the ex-Siemens affiliate filed for insolvency protection.

 

"Since October 2005, we have committed and invested an inordinate amount of capital and resources into our German mobile phone subsidiary. We have worked alongside our German colleagues from the beginning and were able to achieve quite a number of milestones," expressed K.Y. Lee, BenQ Corporation Chairman. "Despite the progress achieved in reducing cost and expenses, widening losses have made this very painful decision unavoidable," continued Mr. Lee.

 

BenQ Mobile GmbH & Co OHG's operations in Germany, including Munich, Bocholt and Kamp-Lintfort may be affected. Other subsidiaries in Brazil and other locations are reviewing their financial position. BenQ will continue its branded mobile business in selected markets leveraging its existing R&D and manufacturing operations in Asia.

 

For further analysis on the potential fallout of the closure, see the Spiegel Online story which gives a distinctly German perspective on this news.

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benq
By xsilver on 10/1/2006 11:22:21 PM , Rating: 2
benq jumped aboard a sinking ship in seimens
mobile phone users are surprisingly brand loyal and there's just not enough market share to go around. The big 4 of nokia, motorola, samsung, sony will fight much more intensly than any 2 way computer company stoush




RE: benq
By Goty on 10/2/2006 12:27:28 AM , Rating: 2
I don't know if I'm in the minority here, but the only impact the brand of a phone has on me is whether or not I like the menu system used. I like certain systems (e.g. Samsung, LG) and don't like others (e.g. Motorola). Even this really doesn't affect my purchasing to that great of an extent as I've owned Nokia, Samsung, and LG phones, and my next will probably be a Motorola.


RE: benq
By MobileZone on 10/4/2006 3:36:57 AM , Rating: 2
not for a long time, you can be sure of that.

I mean, in my whole mobile phone life, I've learned that the hang-on button is on the left and hang-up on the right, right?


RE: benq
By xphile on 10/2/2006 5:32:12 AM , Rating: 2
I think you will find that fourth brand is Sony Ericsson and therein lies an answer - in this particular tech game even a giant like Sony realised it couldnt get in on the action alone - and if that's the case what little chance does anyone else have - at least globally. Markets like China and Japan may be a bit different, but the big four are so big globally that to be part of the action you really have to become part of them. I too disagree with brand loyalty - myself personally I buy the cheapest phone I like at the time I need it, most people I've ever discussed it with have been the same.


RE: benq
By EclipsedAurora on 10/2/2006 10:41:02 AM , Rating: 3
Yes u are right.
Samsung also partners with B&O (I don't know if the Samsung-B&O model is availabler globally, but for Asia-Pacific region like China and Hong Kong). And also, Motorola also partners with D&G to improve her brand name image.

Seems everyone is targeting for Nokia's head position.


Tech Writer, please actually read your sources
By Crassus on 10/2/2006 2:31:57 AM , Rating: 1
Quality at DailyTech that seems not really to be a concern among it's contributers. Otherwise, when reading the article you linked to, you may have noticed that BenQ GmbH has filed for Insolvency, not Insolvency Protection, which is A) something different from the first and B) doesn't even exist in German law.




By Marcus Yam on 10/2/2006 3:45:36 AM , Rating: 3
Forgive me for my lack of familiarity with German corporate law, but the press release from BenQ clearly states the following:
quote:
To stem unsustainable losses at BenQ's mobile operations, BenQ Corporation's board of directors convened today and resolved to discontinue capital injection into BenQ Mobile GmbH & Co OHG, its German mobile phone subsidiary. The subsidiary is considering filing for insolvency protection .

Whether or not BenQ was in error concerning exactly what it was planning to do with its floundering subsidiary is something that I cannot confirm at the present moment. At any rate, thanks for the feedback. :]


meow
By spinejam on 10/1/06, Rating: -1
"Google fired a shot heard 'round the world, and now a second American company has answered the call to defend the rights of the Chinese people." -- Rep. Christopher H. Smith (R-N.J.)









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