Wed, May 03, 2006 - Page 12 News List

BenQ looking to become a global presence

INTERCONTINENTAL The recent merger with Siemens may help the firm in Europe but the lucrative US market may prove to be a tougher nut to crack

NY TIMES NEWS SERVICE , TAIPEI

That tilts the balance to Motorola, Nokia, Samsung and LG, which already control about 85 percent of the US market.

While carriers are always looking at new handsets as a way to distinguish their brands, they are also comfortable with their current arrangements.

Asked about BenQ's prospects in the US, Gary Forsee, the chief executive of Sprint Nextel, said BenQ would most likely remain on the fringes.

"Around any business model, you end up with three, four or five companies with significant share and others coming up with niche products," he said.

But BenQ is less interested in being a niche player or a mass producer of cheap phones. Instead, it wants to invest in the research and development of high-end handsets, for consumers in Europe, Asia and North America, that rival the Motorola Razr and the video phones from Samsung and LG that Verizon Wireless and Sprint sell.

"We have strength in R&D, manufacturing and fashion in Asia, and we're located in Taiwan, where the PC infrastructure is strong," Lee said. "And if you look at Germany, there's a long heritage, like Mercedes and BMW, in manufacturing and design."

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