BenQ Parent Company Sticking It Out In Cellphones - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


BenQ Parent Company Sticking It Out In Cellphones

After high hopes of being a handset giant, the tattered remains of BenQ-Siemens will be sold off on eBay. But the company is already planning a comeback, focusing on products that have worked in the past.

SHANGHAI — Despite the pending liquidation of BenQ Mobile, its parent company in Taiwan intends to stick it out in the handset market, focusing on smart phones and mobile internet devices that take advantage of fixed-mobile convergence.

Jerry Wang, the former chairman of BenQ Mobile told EE Times Thursday that the company will roll out a series of convergence devices this year that range from basic feature phones up through smart phones and ultra mobile PCs.

Of the 14 phones BenQ plans to launch this year, most will have Wi-Fi connectivity so that users can smoothly shift from wide area networks to local area networks. "There are not many vendors who are able to do this at this moment," Wang said, adding that the company is talking with several customers and operators about the devices.

Earlier this week, German bankruptcy administrator Martin Prager confirmed the sale of BenQ Mobile, saying: "There is no longer a realistic chance of it being sold as a whole," so office equipment, every stick of furniture, factory gear, and maybe even a few phones, will be auctioned off, some of it on eBay.

It's an ignominious end to a company intended to serve as a stepping stone to global ambitions. "Everybody understands that we need to go back to 1.5 years ago and restart again," said Wang, who is also executive vice president and chief marketing officer of BenQ Corp.

On a positive note, BenQ expects at least 30 percent to 40 percent growth from its LCD monitor line this year, better margins in digital still cameras and continued Top 3 performance in projectors. In short, it is going back to basics and focusing on products that have clicked before.

When the original BenQ-Siemens deal happened in mid 2005, it was one of the largest technology acquisitions in Asia that year, and part of a growing trend in which Asian companies, particularly in Greater China, seek out distressed assets of Western companies in the hope that stricter cost control and manufacturing efficiencies can bring them back to profitability.

Many aren't surprised at the outcome of the BenQ-Siemens venture. Siemens basically gave the troubled division to BenQ to stem the flow of red ink. The unit was losing more than $1.5 million a day and had racked up losses of about $650 million during the 12 months preceding the sale.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
IT Careers: Top 10 US Cities for Tech Jobs
Cynthia Harvey, Freelance Journalist, InformationWeek,  1/14/2020
Predictions for Cloud Computing in 2020
James Kobielus, Research Director, Futurum,  1/9/2020
What's Next: AI and Data Trends for 2020 and Beyond
Jessica Davis, Senior Editor, Enterprise Apps,  12/30/2019
Register for InformationWeek Newsletters
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll