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
Slideshows
Data Science: How the Pandemic Has Affected 10 Popular Jobs
Cynthia Harvey, Freelance Journalist, InformationWeek,  9/9/2020
Commentary
The Growing Security Priority for DevOps and Cloud Migration
Joao-Pierre S. Ruth, Senior Writer,  9/3/2020
Commentary
Dark Side of AI: How to Make Artificial Intelligence Trustworthy
Guest Commentary, Guest Commentary,  9/15/2020
White Papers
Register for InformationWeek Newsletters
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
Video
Current Issue
IT Automation Transforms Network Management
In this special report we will examine the layers of automation and orchestration in IT operations, and how they can provide high availability and greater scale for modern applications and business demands.
Slideshows
Flash Poll