BenQ profit decline continues

19 Aug 2005

Taiwan’s leading cellphone manufacturer BenQ has posted an 84% fall in profit for the second quarter 2005 on the back of a reduction in selling prices. Net profit for the three months to the end of June fell to TWD480 million, down from TWD2.97 billion a year earlier and TWD300 million in the first quarter. Despite the steady fall in profit, BenQ predicts that sales for the third quarter will grow 10% on the TWD29.7 billion reported in 2Q, following the introduction of more own-brand, higher margin products. The manufacturer is also confident that its handset business – which now includes the mobile phone assets of Germany’s Siemens – will break even next year.