BenQ to shift focus from handsets to MIDs
BenQ could possibly completely quit the handset market and shift focus to the Mobile Internet Device (MID) segment instead, according to industry sources.
However, company sources refuted the claims, and although admitting that business focus will shift to MIDs, noted in saying that the company will not completely quit handsets. BenQ will still introduce new models in accordance with customer requests, the sources noted.
The company sources indicated that BenQ's handset shipments were up about 40% on quarter in the second quarter to 40,000-50,000 units. Of the shipped amount, almost half supported 3G. The company's planned launch of a low-cost 3G handset, E55, is on track for July, the sources noted.
After exiting the China handset market, BenQ seems to be preparing a farewell for its handset business as production does not meet economies of scale, resulting in weak bargaining power with OEMs, the industry sources said. Amid the upcoming launch of a new Intel Atom-based MID in the third quarter, the company thus plans to shift its focus to the new segment instead, they explained. The MID is slated to begin shipments to operators in Europe in July, according to company sources.
The majority of BenQ's handset R&D team has transferred to spin-off Qisda meaning the company has needed to partner with other handset ODM and EMS players such as the China-based ZTE and Cal-Comp Electronics, the sources said. But the fewer R&D resources have made the handset business very harsh for BenQ, especially with severe competition from rivals, they commented.
However, company sources refuted the claims, and although admitting that business focus will shift to MIDs, noted in saying that the company will not completely quit handsets. BenQ will still introduce new models in accordance with customer requests, the sources noted.
The company sources indicated that BenQ's handset shipments were up about 40% on quarter in the second quarter to 40,000-50,000 units. Of the shipped amount, almost half supported 3G. The company's planned launch of a low-cost 3G handset, E55, is on track for July, the sources noted.
After exiting the China handset market, BenQ seems to be preparing a farewell for its handset business as production does not meet economies of scale, resulting in weak bargaining power with OEMs, the industry sources said. Amid the upcoming launch of a new Intel Atom-based MID in the third quarter, the company thus plans to shift its focus to the new segment instead, they explained. The MID is slated to begin shipments to operators in Europe in July, according to company sources.
The majority of BenQ's handset R&D team has transferred to spin-off Qisda meaning the company has needed to partner with other handset ODM and EMS players such as the China-based ZTE and Cal-Comp Electronics, the sources said. But the fewer R&D resources have made the handset business very harsh for BenQ, especially with severe competition from rivals, they commented.
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