Rest In Peace, BenQ Mobile - 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.

IoT
IoT
Mobile
Commentary
2/26/2007
02:05 PM
Eric Ogren
Eric Ogren
Commentary
50%
50%

Rest In Peace, BenQ Mobile

The former Siemens mobile phone division, once one of the top global makers of handsets, has completely and utterly imploded. All its remaining employees will need to look for other employment and its assets will be sold off in pieces to appease creditors, to which it owes $1.16 billion.

The former Siemens mobile phone division, once one of the top global makers of handsets, has completely and utterly imploded. All its remaining employees will need to look for other employment and its assets will be sold off in pieces to appease creditors, to which it owes $1.16 billion.BenQ Mobile has been in protracted death throes for months, following its September 2006 declaration of bankruptcy. The company stumbled under Siemens' ownership and then failed under BenQ because managers failed to develop and market handsets that competed with Nokia and Sony Ericsson. Under Taiwanese ownership since 2005, the company went nowhere but downhill.

German trade unions, notably IG Metall, alleged that senior management was entirely to blame. "New innovative mobile phones were developed to the point of market maturity, but on account of wrong or late decisions by the upper echelons of the company were never mass-produced or if they were at much too late a date," the trade union said in a prepared statement.

For the last few months, BenQ hoped to sell the complete mobile division to someone, anyone, but the most recent interested party has decided that the company cannot be salvaged financially and withdrew its bids over the weekend.

As such, its insolvency manager, Martin Prager, announced that the company's assets (furniture, patents, buildings of an estimated worth of $408 million) will be broken up and sold separately.

It's always a sad day to see a company die. Even more so when just a few short years ago it was riding a global wave of success. The event underscores just how competitive the global market for mobile phones is.

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
News
COVID-19: Using Data to Map Infections, Hospital Beds, and More
Jessica Davis, Senior Editor, Enterprise Apps,  3/25/2020
Commentary
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
Slideshows
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
White Papers
Register for InformationWeek Newsletters
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.
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
Slideshows
Flash Poll