BenQ goes back to basic

BenQ is now withdrawing from its global strategy and will now get back to its winning concept with being an Asian brand. Recently BenQ-Siemens who later became BenQ Mobile GmbH posted a loss of 1.1 billion dollars and this weak result combined with BenQ's cut off fundings made BenQ Mobile GmbH to file for bankruptcy protection. Key to Benq's growth is Asia, where mobile-phone sales are rising about five times the rate in the U.S. and where China and India add a combined 10 million users each month. Benq will have to fend off Nokia Oyj and Motorola Inc., the world's two largest handset makers, as they seek to increase market share in emerging markets with models priced as low as $40. "Retreating to and recasting itself as a regional player in Asia's handset market is probably the way out for Benq after the setback in Europe,'' said Peter Wu, who helps manage the $1.5 billion Invesco Taiwan Technology Fund, including Benq shares. "That's why I'm still keeping the stock.''