Siemens to sell bulk of its mobile business to BenQ

Siemens to sell bulk of its mobile business to BenQ

The German engineering giant and mobile phone maker Siemens has decided to sell bulk of their mobile business to the Taiwanese mobile company BenQ. Reason being the company was making huge losses in this line and they have slumped to sixth position in the mobile market share in the world.

Siemens has noticed a massive drop of 27% in sales and a loss of €138m in the second quarter. They just have 5.5% of the world’s market share. With companies like Samsung and Motorola making huge progress in this field, siemens is finding it hard to sustain the pressure. The company had earlier announced in April that they would soon be spinning off this business into a separate entity.

BenQ itself is growing big time and would now take 90% of the mobiles unit in a move to extend its reach into Europe. The company is partially owned by the computer maker Acer. BenQ also happens to be the largest mobile manufacturing company in Taiwan and had sales of around USD 4.7 Billion last year.

However, this news would also mean that their would be a huge job cut in the Siemens factories in Germany as BenQ would be trying hard to make its new acquisition profitable.