BenQ has a game plan to divide and conquer

BENQ has launched a new corporate entity to separate branded and manufactured business, the Taiwan-based company said yesterday.

In its new form, BenQ is the branded division of Qisda Corp, which replaced the old name BenQ Corp. The new BenQ will focus on branded products from digital projectors, computer monitors and other electronics and mobile phones.

Qisda is the manufacturing side of the former BenQ, which provides OEM (original equipment manufacturer) business for other branded PC or phone makers.

BenQ expected its branded business will bring it revenue of NT$60 billion (US$1.82 billion) in the next year starting from Monday. By 2009, the company forecasts sales to reach NT$100 billion.

"The LCD (liquid crystal display) product has become a profit engine for our firm and is one of the most important categories of the whole portfolio," Claire Tien, BenQ's senior market director, said during a press conference to promote the LCD monitors and LCD TVs.

AU Optronics, BenQ's associate firm, is the world's No. 3 LCD panel provider.

"We have focused on the 19-inch and 22-inch LCD monitor segment and 32-inch and 37-inch LCD TV market," said Tien. "The smaller-sized TV is a smart choice for the second TV, maybe for the study room."

The mobile phone business, in which BenQ has invested heavily, has taken a back seat, industry insiders said.

BenQ acquired Siemens AG's mobile phone unit in 2005. The Taiwanese company was never able to turn the troubled business around, despite Siemens paying BenQ 250 million euros (US$340.8 million) to take the ailing division off its hands.

Six money-losing quarters after the acquisition, BenQ lost 840 million euros.