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Cellphone9 : Mobile Phones, 3G, Telco Industry, Cellular Networks, Phone Reviews

Bye bye BenQ-Siemens!

by Jayvee on October 1st, 2006

You know, at the back of my mind I knew something like this would happen. Even if they made promising phone models like the S88, it wasn’t enough to sustain the merger of both companies. Damn, to think they almost survived for one year!

Even though BenQ and Siemens have managed to release several successful mobile phone models, market share of BenQ-Siemens combined was only 3.2% in Q2 2006, whereas Siemens’ market share in Q2 2005 was 4.8%, moreover, mobile phone shipments in Q2 2006 decreased by over 20% year-over-year, according to Gartner Research. Moreover, the German subsidiary continued to lose money and could not increase the pace of new models introduction.

“We have been trying to improve the cost structure of our handset subsidiary BenQ Mobile in Germany for over the past year. However, the costs there were not falling as fast as we had expected, while the introduction of new products was lagging far behind schedule,” Mr. Lee added at a press-conference in Taipei, Taiwan, reports DigiTimes web-site. (source)

Well, if you’re going to attribute failure to something, maybe you should take a look at this upcoming phone they were supposed to release. *sigh* This is actually a “history repeats itself” failure of the Siemens SX1 when they tried to introduce the really dumb idea of putting keys on the sides. Thank you BenQ-Siemens for your time and efforts.

You can view the full press release here.

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