Brand depth and soft power challenges- BenQ Siemens space.docVIP

 PAGE \* MERGEFORMAT 6 Brand depth and soft power challenges: BenQ Siemens ‘space’ June 8, BenQ Siemens in Beijing officially announced acquisition of the mobile phone business, had been simmering speculation that Siemens is also the ultimate settled buyers. Input from the entire acquisition process, the seller Siemens not only no charges, and at least have to pay the cost of 350 million euros, of which 250 million euros for research and development, 050 million euros for the purchase of BenQ shares. Although the number of Siemens, some ton output capacity of the tragic, but lower than the more than 500 million euros in losses and more than 100 million euros per quarter loss of speed, Kleinfeld choice could be a shrewd decision. In addition, its close to 700 million euros a year business in terms of tape, peel a continuous loss of non-core businesses can indeed raise their capital efficiency. On the contrary, in terms of the BenQ, Siemens mobile phone business like a rich dowry, the bride, in addition to the acquisition of near-zero cost, you can also get the right to use the Siemens brand, the core patented technology, strong R amp;amp; D team and ready-made in Eastern Europe and the in other international markets, can serve several purposes. No wonder the industry have to take TCL BenQ’s acquisition of Siemens and Alcatel merger mutatis mutandis, on mergers and acquisitions in the inputs, the BenQ is indeed too much clever than the TCL. However, the world will never be a free lunch. For BenQ, the Siemens ultra-high cost of their own lack of experience in mobile manipulator, channel construction and expansion of the product chain, and even finance the merger are all pressing issues. In fact, we have no doubt that BenQ’s cost control and short term pressure on capital commitments. In other words, within one to two years should be able to withstand BenQ Siemens mobile phone business losses, and R amp;amp; D costs and channel construction reflects the strength