BenQ, a Taiwanese-based company, grabbed the headlines all over the world on June 7, 2005 when it acquired Siemens Mobile, a lose making mobile phone division of Germany’s Siemens and later launched the brand, BenQ-Siemens. Subsequently the acquisition proved to be a strategic mistake, as the two companies could not successfully integrate.
In October 2006 BenQ-Siemens filed for bankruptcy in a Munich court, surprising every one. This sparked a debate in Germany over whether BenQ had acquired Siemens mobile division for all its patents and its intellectual property rights and it did not intend to continue manufacturing mobile phones in Germany. BenQ’s Mobile factory in Kamp-Lintfort was closed on 30 January 2007, as they could not find a …show more content…
BenQ was established in 1984 and was initially known as Acer Peripherals Inc., and in December 2001 it was rebranded as BenQ. Currently, the company has manufacturing plants in Malaysia, Mexico, China and Taiwan and it provides jobs to over 13,500 employees all over the world, supporting a strong global sales marketing and service network spanning Asia-Pacific, Europe and the Americas. For many years, BenQ had been a consumer electronics contract manufacturer but later it expanded to include many clients like cell phone Motorola and Nokia. BenQ’s Chairman Lee frequently cited Steve Jobs of Apple as a key source of his inspiration and he especially admired the way Jobs nurtured the Apple brand. Lee noted that “technology changes so fast, and consumer habits are changing all the time. The only thing a company has in the long term is the brand name and the management philosophy”.
Siemens Mobile Siemens Mobile was a mobile phone manufacturing division of Siemens AG. The first mobile phone from Siemens is the Siemens Mobil telefon C1 which was launched in …show more content…
BenQ acquired the ailing mobile devices division of Germany’s Siemens, Siemens Mobile on June 7, 2005.
As per the agreement, BenQ acquired 100% of Siemens mobile without directly paying the parent German company. Instead, Siemens provided BenQ with 250 million euros to help fund the business, and later paid 50 million euros to buy newly issued shares in BenQ. Also, Siemens continued to carry the unit’s losses, about 1.5 million euros a day until the transaction was completed on September 30, 2005. The new business division, BenQ Mobile, started its operation on October 1, 2005. Siemens invested 250 million euros and wrote down assets amounting to 100 million euros. Siemens also acquired a 2.5% stake in BenQ for 50 million euros. Subsequently, BenQ released mobile phones under the brand BenQ-Siemens, from its German unit. The new company was headquartered in Munich, Germany and had over 7,000 employees’ worldwide working on research and development, design, sales, and marketing. In 2006 the German unit of BenQ filed for bankruptcy.
Issues which cropped up after the
In October 2006 BenQ-Siemens filed for bankruptcy in a Munich court, surprising every one. This sparked a debate in Germany over whether BenQ had acquired Siemens mobile division for all its patents and its intellectual property rights and it did not intend to continue manufacturing mobile phones in Germany. BenQ’s Mobile factory in Kamp-Lintfort was closed on 30 January 2007, as they could not find a …show more content…
BenQ was established in 1984 and was initially known as Acer Peripherals Inc., and in December 2001 it was rebranded as BenQ. Currently, the company has manufacturing plants in Malaysia, Mexico, China and Taiwan and it provides jobs to over 13,500 employees all over the world, supporting a strong global sales marketing and service network spanning Asia-Pacific, Europe and the Americas. For many years, BenQ had been a consumer electronics contract manufacturer but later it expanded to include many clients like cell phone Motorola and Nokia. BenQ’s Chairman Lee frequently cited Steve Jobs of Apple as a key source of his inspiration and he especially admired the way Jobs nurtured the Apple brand. Lee noted that “technology changes so fast, and consumer habits are changing all the time. The only thing a company has in the long term is the brand name and the management philosophy”.
Siemens Mobile Siemens Mobile was a mobile phone manufacturing division of Siemens AG. The first mobile phone from Siemens is the Siemens Mobil telefon C1 which was launched in …show more content…
BenQ acquired the ailing mobile devices division of Germany’s Siemens, Siemens Mobile on June 7, 2005.
As per the agreement, BenQ acquired 100% of Siemens mobile without directly paying the parent German company. Instead, Siemens provided BenQ with 250 million euros to help fund the business, and later paid 50 million euros to buy newly issued shares in BenQ. Also, Siemens continued to carry the unit’s losses, about 1.5 million euros a day until the transaction was completed on September 30, 2005. The new business division, BenQ Mobile, started its operation on October 1, 2005. Siemens invested 250 million euros and wrote down assets amounting to 100 million euros. Siemens also acquired a 2.5% stake in BenQ for 50 million euros. Subsequently, BenQ released mobile phones under the brand BenQ-Siemens, from its German unit. The new company was headquartered in Munich, Germany and had over 7,000 employees’ worldwide working on research and development, design, sales, and marketing. In 2006 the German unit of BenQ filed for bankruptcy.
Issues which cropped up after the