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BenQ Mobile – end of the story for Siemens
In the middle of 2005 it became publicly known that this “buyer” would be BenQ, unknown on the market of handsets up to that time and recognized only on the Asian market, where the company had moderate success. BenQ was occupied mainly with TFT panels, which the company made a good showing with. Setting out to become a player with a world-wide famous brand, BenQ lacked a credible portfolio of devices, so Siemens Mobile’s offer looked very fetching.
In the first half of 2005, Siemens’s mobile division had turned into a real pain as it had been losing from 1,5 to 2 mln. Euro a day, furthermore by June its share went down to 5,4% (according to Strategy Analytics). Apparently, only a miracle or an incredibly successful and awesome line-up could save the company’s day. Over at Siemens they decided to reject the latter idea, as they were regarding things in a sober light – by that moment the amount of developers had been reduced to the utmost (over two years a part company’s staff had been laid off in order to cut down expenses). The remaining team could not support the already existing handsets and develop software for new ones – that was too much for them. As a result ordinary consumers saw awfully written software, crudeness of handsets and recession of Siemens-branded devices’ reputation that has started in 2003, to the point when they are considered as unstable, buggy handsets. Regrettably, Siemens was not in habit of correcting own mistakes – instead the company’s managers kept spreading high-flown words. Giving an interview to me, one the company’s directors was very proud to report on the success Xelibri line-up had, even though by then it was not a secret that this range had turned out to be a deafening failure, while all developments in this field had already been shut down. The same can be said about the company’s attempts to somewhat stabilize the disorder in its business – the real deeds got replaced with grandiloquent words.
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