Siemens AG officials said they have no plans to sell the company’s loss-making handset business, according to reports. Industry has been awash in rumors that Siemens will either sell its mobile phone operations or form some type of joint venture with the likes of NEC Corp. in Japan, Ningbo Bird in China or LG Electronics Co. Ltd. Some reports even predicted the company will simply shut down its mobile-phone business.
“Discussions are ongoing,” Siemens executive Ralf Heckmann told a German newspaper, according to reports. “We are not talking about a sale of the unit, but discussing overall problems within the communications unit.”
The company’s chief executive has promised to give an update on the company’s handset business in conjunction with the company’s earnings announcement Jan. 27.
Chris Ambrosio, director of research and consulting firm Strategy Analytics’ Wireless Device Strategies Service, said he doesn’t expect Siemens to make any drastic moves like a sale or a joint venture.
“I’m kind of convinced they will go it alone,” he said. “I think they need to hire some help internally.”
Ambrosio said Siemens has been promoting its converged services, and handsets are an integral part of that offering. He said the company will likely retain its handset business to offer carriers a total equipment package, one that spans infrastructure and terminals.
