BenQ-Siemens

Last updated

BenQ Mobile
Subsidiary
Industry Communications
Founded 1 October 2005
Defunct 30 January 2007
Headquarters Munich, Germany
Key people
 Clemens Joos, CEO; Jerry Wang, EVP and CMO; Alex Liou, Head of Corporate Finance; Irwin Chen, Member of the Board
Products Mobile phones
Brands Siemens (until 2006)
BenQ-Siemens (2006-2007)
Total assets US$775 million
Number of employees
 ~3,000
Parent BenQ Corporation
Website www.benqmobile.com
BenQ-Siemens store BenQ-Siemens Phone Store.jpg
BenQ-Siemens store
BenQ-Siemens EF81 BenQ-Siemens EF81 1.jpg
BenQ-Siemens EF81

BenQ Mobile Gmbh & Co. OHG was the mobile communications subsidiary of Taiwanese BenQ Corporation, selling products under the BenQ-Siemens brand. [1] The group, based in Munich, Germany, was formed out of BenQ's acquisition of the then struggling Siemens Mobile group in 2005. The newly formed company won the most iF product design awards in 2006 and also won many design awards in Germany's red dot competition. [2] However BenQ Mobile went bust later that year.

General partnership association of persons or unincorporated company

A general partnership, the basic form of partnership under common law, is in most countries an association of persons or an unincorporated company with the following major features:

Taiwan state in East Asia

Taiwan, officially the Republic of China (ROC), is a state in East Asia. Neighbouring states include the People's Republic of China (PRC) to the west, Japan to the northeast, and the Philippines to the south. Taiwan is the most populous state and largest economy that is not a member of the United Nations (UN).

BenQ business enterprise

BenQ Corporation is a Taiwanese multi-national company that sells and markets technology products, consumer electronics, computing and communications devices under the "BenQ" brand name, which stands for the company slogan Bringing Enjoyment NQuality to life. Its principal products include TFT LCD monitors, digital projectors, digital cameras, and mobile computing devices.

Contents

History

Siemens Mobile was loss-making and struggling in the market, and the division was then sold to BenQ Corporation in June 2005 to try to turn the business around. As part of the deal, Siemens would pay BenQ at least 250 million euros to get the new venture to a solid start, in return of a 2.5% stake in BenQ. [3] The acquisition was completed on 1 October 2005 with the formation of BenQ Mobile, led by a German CEO, Clemens Joos, and a Taiwanese chairman, Jerry Wang. Joos had already been president of Siemens Mobile since 2004. [4]

Siemens AG is a German conglomerate company headquartered in Berlin and Munich and the largest industrial manufacturing company in Europe with branch offices abroad.

Part of the reason why BenQ was chosen by Siemens was the Taiwanese company's interest to keep German locations open - the headquarters in Munich and the manufacturing plants in Kamp-Lintfort and in Bocholt. [5] Other research and development and manufacturing plants were located in Aalborg, Beijing, Suzhou, Ulm (also in Germany), Manaus, Mexicali, Taipei and Wrocław. [6] Before the acquisition BenQ was already making mobile phones - including two Symbian UIQ smartphone models and one Windows Mobile smartphone model. [7] [8]

Munich Place in Bavaria, Germany

Munich is the capital and most populous city of Bavaria, the second most populous German federal state. With a population of around 1.5 million, it is the third-largest city in Germany, after Berlin and Hamburg, as well as the 12th-largest city in the European Union. The city's metropolitan region is home to 6 million people. Straddling the banks of the River Isar north of the Bavarian Alps, it is the seat of the Bavarian administrative region of Upper Bavaria, while being the most densely populated municipality in Germany. Munich is the second-largest city in the Bavarian dialect area, after the Austrian capital of Vienna.

Kamp-Lintfort Place in North Rhine-Westphalia, Germany

Kamp-Lintfort is a town in Wesel District, in North Rhine-Westphalia, Germany. It is located 8 kilometres north-west of Moers.

Bocholt, Germany Place in North Rhine-Westphalia, Germany

Bocholt is a city in the north-west of North Rhine-Westphalia, Germany, part of the district Borken. It is situated 4 km south of the border with the Netherlands. Suderwick is part of Bocholt and is situated at the border annex to Dinxperlo.

On 17 January 2006, the first handsets under the new BenQ-Siemens brand were launched: the EF81, a slim clamshell phone similar to Motorola RAZR; the S68, a premium light and compact candybar phone targeting business users; and S88, a multimedia device with a 2-megapixel camera. [9] [10]

In February 2006 the EF51 model was launched featuring music buttons on the front with a flip-down design that reveals a keypad. [11] BenQ Mobile introduced the BenQ-Siemens P51 in March, a Windows Mobile 5.0 device and the only smartphone the company would release. [12]

Windows Mobile 5.0

Windows Mobile 5.0, originally codenamed "Magneto", was released at Microsoft's Mobile and Embedded Developers Conference 2005 in Las Vegas, May 9–12, 2005. Microsoft offered mainstream support for Windows Mobile 5 through October 12, 2010, and extended support through October 13, 2015. It was first offered on the Dell Axim x51. It used the .NET Compact Framework 1.0 SP3, an environment for programs based on .NET. Windows Mobile 5.0 included Microsoft Exchange Server "push" functionality improvements that worked with Exchange 2003 SP2. The "push" functionality also required vendor/device support With AKU2 software upgrades all WM 5.0 devices supported DirectPush. This version featured increased battery life due to Persistent storage capability. Previously up to 50% of battery power was reserved just to maintain data in volatile RAM. This continued the trend of Windows-based devices moving from using RAM as their primary storage medium to the use of a combination of RAM and flash memory. Programs and frequently accessed data run in RAM, while most storage is in the flash memory. The OS seamlessly moves data between the two as needed. Everything is backed up in the flash memory, so unlike prior devices, WM5 devices lose no data if power is lost. New to 5.0, OS updates were released as Adaptation kit upgrades, with AKU 3.5 being the final released.

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The company ended up making huge losses, with parent BenQ losing $1 billion (€840 million) from the acquisition to September 2006. [13] [14] [15] BenQ Mobile only had a global 2.4% market share as of Q3 2006, failing to turn the business around in its first year. [16] In September it was announced that its factories in Mexico and Taiwan would halt production. [17]

BenQ Mobile filed for bankruptcy in a Munich court on 29 September 2006, a day after its parent BenQ decided to stop funding the unit. [18] This sparked a debate in Germany over whether BenQ only acquired the Siemens mobile division for its patents and intellectual property, and that it did not intend to continue manufacturing mobile phones in Germany. [19] The bankruptcy caused outrage in Germany over the possible thousands of job losses, [20] with chancellor Angela Merkel having said that Siemens is responsible for the BenQ Mobile employees who are at risk. [21] Siemens set up a 35 million euros fund for BenQ Mobile employees. [22] Siemens also considered taking legal action against BenQ about the future use of the brand and patents, [23] having stopped payment still owed to BenQ related to the original acquisition. [24] [25] Siemens was heavily criticised by some German politicians and labour unions for mismanagement that led to the bankruptcy. [26] [27] A BenQ executive said that stopping funds for the Mobile subsidiary and forcing it into insolvency protection was a "really tough decision" and not as easy as "just walking away" as was reported by some media outlets. [28]

2,000 employees were laid off in late October 2006. [29]

A scandal investigation was launched into Siemens's and BenQ's roles in the bankruptcy of BenQ Mobile amid allegations that financial offences were committed. [30] As of March 2007, 13 executives, including Eric Yu, were detained in Taiwan accused of selling their shares in BenQ before the announcement knowing about the bankruptcy filing. Shares in BenQ fell 7% to its lowest level in ten years. [31] BenQ CEO K.Y. Lee was also detained a month later. [32] At the same time Siemens was facing wide allegations in Germany of internal corruption and bribery not necessarily related to BenQ Mobile. [33] [34]

After no suitable investors or buyers were found for the business, BenQ Mobile's insolvency administrator, Martin Prager, said on 2 January 2007 that the company will shut down. [35] On 30 January the BenQ Mobile factory in Kamp-Lintfort closed. Representatives of the labour union IG Metall bid farewell to the last 165 workers with flowers. [36] The demise of BenQ Mobile caused 3,000 employees to lose their jobs. [37] The company's assets were auctioned off in Hamburg and at eBay in March 2007. [38] [39] [40]

The losses of 2005 and 2006 wiped out all profits BenQ had made since 1999. [41]

Post-demise

Martin Prager launched a 26 million euro lawsuit against its former parent BenQ in August 2007 on top of 80 million euros already claimed. The lawsuit was partly for BenQ bonus payments promised to BenQ Mobile employees in Germany that were in fact paid by the BenQ Mobile subsidiary. [42] [43] In July 2008, Prager threatened a multi-million euro lawsuit against Siemens claiming the company was already insolvent in May 2006, as first reported by German newspaper Die Welt . [44] A settlement between Prager and Siemens was reached in November 2008. [45]

Former BenQ CEO, K.Y. Lee, along with several executives including Eric Yu and Sheaffer Lee, were cleared of their insider trading, embezzlement and forgery charges in August 2009 after a two-year trial. [46]

After the company closed down, its former parent company, BenQ, launched five new phones (produced in Asia) under the BenQ-Siemens brand during 2007 (the license still ran for another four years). These include the A53 (Taiwan only), E52, C31, C32 and SF71 - [47] [48] briefly continuing the lifespan of the BenQ-Siemens brand. In August 2007, BenQ announced that it would resume production of mobile devices using its own "BenQ" brand, coming with the announcements of the BenQ E72, M7 and T51 models that would initially launch in Taiwan. [49] BenQ started making Android devices from 2013. [50]

List of mobile phones

BenQ-Siemens S68 Benq.siemens.s68.jpg
BenQ-Siemens S68
BenQ-Siemens EF51 BenQ-Siemens EF51.jpg
BenQ-Siemens EF51
BenQ-Siemens E71 Benq-Siemens E71.JPG
BenQ-Siemens E71

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References

  1. ↑ https://hexus.net/tech/news/laptop/6907-benq-siemens-phone-maker-files-insolvency-protection/?page=2
  2. ↑ https://www.benq.is/news/1141858800_34_97.html
  3. ↑ https://www.hexus.net/ce/news/communications/1403-siemens-seals-fate-mobile-communications-arm/
  4. ↑ https://www.infoworld.com/article/2672393/networking/new-benq--siemens-mobile-phone-company-opens.html
  5. ↑ https://www.hexus.net/ce/news/communications/1403-siemens-seals-fate-mobile-communications-arm/
  6. ↑ https://www.albawaba.com/news/benq-corporation-unveils-new-consumer-brand-benq-siemens
  7. ↑ http://southafrica.benq.com/news/1043874000_46_294.html
  8. ↑ https://www.theregister.co.uk/2006/01/31/benq_ships_p50/
  9. ↑ https://www.theregister.co.uk/2006/01/17/benq_siemens_phone_launch/
  10. ↑ https://www.mobilegazette.com/benq-siemens-launch-0601x18.htm
  11. ↑ https://www.engadget.com/2006/02/13/benq-siemens-ef51-puts-music-front-and-center/
  12. ↑ https://www.infoworld.com/article/2657444/networking/benq-s-new-phones-include-windows-mobile-5-0-pda.html
  13. ↑ http://news.bbc.co.uk/1/hi/business/6224185.stm
  14. ↑ http://www.taipeitimes.com/News/biz/archives/2006/10/04/2003330421
  15. ↑ https://www.engadget.com/2006/09/28/benq-pulls-the-plug-on-its-german-mobile-division/
  16. ↑ https://www.nytimes.com/2007/01/02/business/worldbusiness/02iht-benq.4081240.html
  17. ↑ https://www.ft.com/content/59a7ae06-48cf-11db-a996-0000779e2340
  18. ↑ https://www.networkworld.com/article/2307630/network-security/benq-blames-management-for--1b-loss-at-mobile-unit.html
  19. ↑ https://www.dw.com/en/siemens-the-fall-guy-in-benq-insolvency-scandal/a-2191802
  20. ↑ http://www.spiegel.de/international/spiegel/ex-siemens-subsidiary-flops-benq-bankruptcy-causes-furor-a-440049.html
  21. ↑ https://www.dw.com/en/siemens-the-fall-guy-in-benq-insolvency-scandal/a-2191802
  22. ↑ https://www.siemens.com/press/en/pressrelease/?press=/en/pr_cc/2006/10_oct/axx20061058_1409832.htm
  23. ↑ https://www.ft.com/content/33c752f8-5339-11db-99c5-0000779e2340
  24. ↑ https://www.networkworld.com/article/2307630/network-security/benq-blames-management-for--1b-loss-at-mobile-unit.html
  25. ↑ https://www.dw.com/en/siemens-stops-payment-to-benq-in-taiwan/a-2195451
  26. ↑ http://www.spiegel.de/international/spiegel/ex-siemens-subsidiary-flops-benq-bankruptcy-causes-furor-a-440049.html
  27. ↑ https://www.dw.com/en/siemens-chief-promises-full-explanation-of-bribery-scandal/a-2326912
  28. ↑ https://www.networkworld.com/article/2307630/network-security/benq-blames-management-for--1b-loss-at-mobile-unit.html
  29. ↑ https://www.nytimes.com/2006/10/24/business/worldbusiness/24iht-benq.3268295.html
  30. ↑ https://www.engadget.com/2006/11/19/german-prosecutors-probing-benq-mobiles-bankruptcy/
  31. ↑ https://www.engadget.com/2007/03/15/benq-faces-insider-trading-probe-as-cfo-gets-locked-up/
  32. ↑ https://www.v3.co.uk/v3-uk/news/1989287/benq-ceo-president-detained
  33. ↑ https://www.dw.com/en/siemens-chief-promises-full-explanation-of-bribery-scandal/a-2326912
  34. ↑ http://www.spiegel.de/international/spiegel/a-swamp-of-bribes-siemens-forced-to-battle-internal-corruption-a-451105.html
  35. ↑ https://www.nytimes.com/2007/01/02/business/worldbusiness/02iht-benq.4081240.html
  36. ↑ Heise.de - Production of BenQ Mobile handsets ends in Kamp-Lintfort (Archived)
  37. ↑ https://www.theregister.co.uk/2008/07/07/insolvency_administrator_benq_sues_siemens/
  38. ↑ https://www.theregister.co.uk/2007/02/26/benq_mobile_liquidation/
  39. ↑ https://www.edn.com/electronics-news/4070317/BenQ-Siemens-to-be-auctioned
  40. ↑ https://www.cio.com/article/2442556/mobile/benq-mobile-to-be-divided-and-sold.html
  41. ↑ https://www.forbes.com/2009/08/26/taiwan-benq-insider-trading-markets-equities-lee-kun-yao.html#4a2865415634
  42. ↑ https://www.reuters.com/article/idINIndia-28922620070810
  43. ↑ https://www.engadget.com/2007/08/10/bankrupt-benq-mobile-hits-parent-benq-with-third-lawsuit/?guccounter=1
  44. ↑ https://www.edn.com/electronics-news/4070317/BenQ-Siemens-to-be-auctioned
  45. ↑ https://www.siemens.com/press/en/pressrelease/?press=/en/pressrelease/2008/corporate_communication/axx20081112.htm
  46. ↑ https://www.forbes.com/2009/08/26/taiwan-benq-insider-trading-markets-equities-lee-kun-yao.html#4a2865415634
  47. ↑ http://www.mobilegazette.com/benq-siemens-e52-c31-07x06x12.htm BenQ-Siemens E52 and C31
  48. ↑ https://gizmodo.com/252065/benq-siemens-sf71-joins-in-the-shiny-clamshell-fun BenQ-Siemens SF71 joins in the shiny clamshell fun
  49. ↑ http://e71.ru/news/2007-06-23-30
  50. ↑ "BenQ rejoins the smartphone market with two tepid Android models". 2 December 2013. Retrieved 1 July 2014.
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