BenQ sets ambitious handset shipment goal for 2006

BenQ Corp. projected to ship over 50 million mobile phones throughout this year, an optimistic goal announced by the firm shortly after it unveiled a dual brand "BenQ-Siemens" for the products on Jan. 17 in Beijing.

The company's executives pointed out that BenQ would introduce over 30 models of handset this year, ranging from third-generation phones to WiFi-enabled phones. It will target Asia over Europe as its major market this year, a strategy departing from its focus on the European market before it acquired Siemens' handset business unit in October 2005.

They noted that over 40% of the growth of the world mobile-phone market in the next three years would be contributed by the Asian market alone, with mainland China and India as two major forces to drive up the Asian growth.

The executives estimated world handset market would post a compound annual growth rate of 9% over the next three years beginning 2006, topping 914 million systems in 2006, one billion systems in 2007 and 1.04 billion in 2008. The Chinese mainland alone will register a compound growth rate of 13%, higher than average 10% elsewhere in Asia.

The company plans to increase total output at its supply chain in Asia to 100 million handsets a year from current 40 million units and triple its research and development talents from current 1,200 people over the next three years.

BenQ's mobile business unit reported revenue of 5.6 billion euros (US$6.7 billion at 1 euro: US$1.2) in 2004, representing 7.3% of the world handset market and ranking as the fourth-biggest player in the market. It has slipped to sixth place since it merged Siemens' handset business.

source & copyright: CENS