Tough task
However, achieving that goal has turned out to be tougher than Lee ever imagined.
"Recently, some of our overseas customers -- especially in LCD TVs and monitors -- expressed serious concerns about a possible conflict of interest. They hope we can split the two units," Lee said.
The separation would boost growth and efficiency for its brand and ODM businesses in the future, Lee said.
Apart from mobile phones, BenQ also makes own-brand projectors, computers and LCD TVs, and manufactures computer monitors and slim-screen TVs for other companies.
Chang yesterday cut JP Morgan's target price for BenQ shares by 72 percent from NT$24 to NT$6.5 for the next 12 months, implying a downside of 61 percent.
"We advise investors to cut their losses on BenQ holdings," Chang said.
Chang said BenQ would not be able to break even in the foreseeable future, citing stiff competition from rivals Nokia Oyj and Motorola Inc, which could be the main reason behind 150-year-old Siemens' backing out of the mobile phone industry.
Macquarie analyst Dominic Grant said that BenQ would not break even until 2008, but although challenges remain, he believed the restructuring signalled a new sense of urgency from a company which was determined to stem losses.
Bucking the trend, Grant upgraded BenQ from "under-perform" to "out-perform" on Monday, saying the worst could be over. But He lowered his target price from NT$23.2 to NT$22.34.
JP Morgan and Macquarie both expected BenQ to cut employee numbers by the end of the year.
BenQ said last week that it hoped to cut costs by 600 million euros (US$767.4 million), up from a previous estimate of 500 million euros.
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