Mobile and telephony equipment manufacturer BenQ plans to cut its product line and costs in a bid to make its mobile sector profitable. Despite saving costs of EUR 400 million and considerable corporate restructuring, the Taiwanese company is still unprofitable nine months after it took over the mobile business of Siemens. The company blamed late product launches and the investment needed to correct product ranges for its weak second-quarter results and insisted BenQ is still committed to its mobile sector. “BenQ Mobile is and remains an important pillar to our business”, said chairman Kuen-Yao Lee. “We are supporting the management in every respect so that we can become profitable again as quickly as possible.” The company is aiming to break even next year. It has introduced a management programme titled “Focus and Simplify” to further restructure and to better integrate Siemens business into BenQ. This summer, BenQ aims to save EUR 150 million, cutting production at its Mexican mobile factory. In order to boost profitability, the company will cut its product range to 20 products next year. BenQ is banking on doing well at Christmas through specific offers and believes that the firm’s sponsorship of German football club FC Bayern Munich and Spanish football club Real Madrid will raise awareness of the brand.

Source- http://www.telecompaper.com

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