Benq-Siemens Mobile Essay

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In November 2006, BenQ Corp. (BenQ) announced that it would cut 400 jobs at its Shanghai, China plant. This unit had belonged to the mobile devices division of Siemens AG (Siemens), a major German engineering and electronics company, up until October 2005, when it, along with plants in Germany, Brazil, etc., and R&D labs in Germany, Denmark, and China were sold to BenQ. After acquiring the division, BenQ renamed it BenQ Mobile GmbH (BenQ Mobile). BenQ Mobile had, in September 2006, filed for bankruptcy protection after a year of heavy losses. BenQ was a prominent Taiwanese electronics and computer peripherals manufacturer. As of 2005, it was also the sixth largest manufacturer of mobile phones in the world. Though it largely acted as an OEM for global brands like Nokia, Motorola, etc., it also sold mobile phones under the BenQ brand. The company had big plans to expand its operations and build its brand all over the world. In October 2005, it acquired the loss-making mobile devices division of Siemens. With the acquisition, BenQ planned to sell co-branded mobile phones (BenQ-Siemens) in addition to the BenQ and Siemens brands. Siemens started manufacturing mobile phones in the late 1990s. Despite producing high quality phones, it was unable to make a mark in the highly competitive industry, and the business began incurring huge losses. In 2005, after yet another year of losses in the mobile phones business, Siemens decided to exit the business. However, securing the future of its employees was high on its list of priorities. Therefore, it looked to sell the division to a company that would assure the continuity of the division's operations in Germany In June 2005, BenQ acquired the entire mobile division which comprised the company's manufacturing units in Germany, Brazil, and China. However, the acquisition brought a range of problems for BenQ. The company

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