Siemens plans closure of mobile arm

The Sunday Telegraph 16-01-2005
Siemens plans closure of mobile arm
By Andrew murray-watson
SIEMENS, the giant German industrial conglomerate, is set to shut down its mobile phone division with the loss of more than 5,000 jobs unless it can find an 11th-hour buyer for the handset manu facturer. The group will announce its final decision at its annual meeting on January 27. Any move to shut down Siemens Mobile will send shockwaves through the global handset industry. Siemens is the fourth-largest mobile phone manufacturer in the world, with a 7.6 per cent market share. In the third quarter of 2004 it sold nearly 13m handsets. But despite its size Siemens Mobile has struggled to make profits and lost &euro!40m ( pounds 98m) in the fourth quarter of 2004. The company has also struggled to compete with rivals such as Samsung, the consumer electronics group.
Analysts believe that Siemens has failed in its attempt to stabilise the mobile arm and will now be forced to abandon the division unless it can find a joint venture partner prepared to pour billions of euros into the company in exchange for a majority equity stake. Possible buyers for Siemens Mobile include NEC, the Japanese group, and Ningbo Bird, a Chinese conglomerate.

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The Sunday Telegraph 16-01-2005
Siemens plans closure of mobile arm
By Andrew murray-watson
SIEMENS, the giant German industrial conglomerate, is set to shut down its mobile phone division with the loss of more than 5,000 jobs unless it can find an 11th-hour buyer for the handset manu facturer. The group will announce its final decision at its annual meeting on January 27. Any move to shut down Siemens Mobile will send shockwaves through the global handset industry. Siemens is the fourth-largest mobile phone manufacturer in the world, with a 7.6 per cent market share. In the third quarter of 2004 it sold nearly 13m handsets. But despite its size Siemens Mobile has struggled to make profits and lost &euro!40m ( pounds 98m) in the fourth quarter of 2004. The company has also struggled to compete with rivals such as Samsung, the consumer electronics group.
Analysts believe that Siemens has failed in its attempt to stabilise the mobile arm and will now be forced to abandon the division unless it can find a joint venture partner prepared to pour billions of euros into the company in exchange for a majority equity stake. Possible buyers for Siemens Mobile include NEC, the Japanese group, and Ningbo Bird, a Chinese conglomerate.

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