Dual-branded BenQ Siemens mobile phone expected Q1 2006

IDG News Service |  Mobile & Wireless

Taiwan's BenQ Corp., which agreed to acquire the loss-making mobile phone manufacturing business of German electronics giant Siemens AG in June, plans to launch its first dual-branded product in the first quarter of 2006, a spokeswoman said.

"The phone will be sold globally under the dual brand BenQ Siemens," said BenQ spokeswoman Caroline Hsu in a telephone interview on Friday.

BenQ is keen to use the long-established Siemens brand to expand its mobile phone business.

Under the deal struck with Siemens, BenQ has the right to use the Siemens trademark for mobile phones for a period of 18 months starting Oct. 1.

During this period, BenQ will operate with three mobile phone brand names: BenQ, Siemens and BenQ Siemens.

The BenQ brand will be reserved for existing products sold in markets in which the Taiwanese company had been operating prior to the Siemens phone business acquisition, according to Hsu.

Similarly, products already carrying the Siemens brand will remain in existing markets, she said.

But beginning in October, all new products launched in existing and new markets will carry the dual BenQ Siemens brand. BenQ has cobranding rights for a period of five years, beginning in October.

After that, all products will carry only the BenQ brand, according to Hsu.

As for the plants acquired from Siemens in Germany, BenQ will honor labor agreements between the German manufacturer and its 3,700 mobile phone employees through 2006. After that, the Taiwanese manufacturer has "no definite plans," it said in a recent statement.

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