A new mobile phone maker has entered the market - BenQ.
The new company - formed fromTaiwanese mobile phone maker BenQ's acquisition of Siemens' mobile devices division in June - opened for business on Saturday.
The company will be based in Germany and have a German chief executive officer, Clemens Joos, with a Taiwanese chairman, Jerry Wang. Joos, president of Siemens' mobile devices division since 2004, and Wang, an executive VP at BenQ, have their work cut out for them.
Siemens' share of worldwide mobile phone sales has been falling all year, and it posted a loss for the first half of this year. Meanwhile, BenQ faces its own troubles. The company's switch to focusing on brand name products caused longtime customers for its mobile phone contract manufacturing services to find new partners.
But executives at both companies hope the combined operations, with 7,000 staff, $5.6 billion in revenue and operations in places ranging from Aalborg, Denmark to Suzhou, China, turns their fortunes around.
BenQ Mobile opens with a 5.2 percent of combined global market share, the company estimates, and a number six position in the global handset market.
The Siemens mobile phone brand will continue to exist for another 18 months and the company will be able to co-brand products under the BenQ-Siemens name for five-years. Products using the new, combined brand name will be introduced in the spring of 2006.
In June, BenQ struck a deal to take over Siemens' loss-making handset division and try to turn it around. Siemens said it would pay BenQ €250 million to take over the business and get the new venture off on a solid footing.