OXFORD, United Kingdom—As speculation continues about what Siemens will do with its mobile-phone business, the research firm Gartner said that its latest study into cell-phone manufacturer rankings has seen Siemens slip back to fifth place, falling behind Samsung Electronics in terms of the number of handsets sold.
As this news was released, Volker Jung, head of Siemens, admitted there is a requirement for action over its cell-phone business. “There needs to be a particular volume to reach a certain profitability, and we are holding talks with a number of manufacturers about cooperation.”
The company announced an operating loss of e22 million (US$19.3 million) in its mobile handset business during the fourth quarter ending September.
The company, which has been at the center of speculation over its cell-phone strategy for months, now seems more in favor of a partnership with a Japanese-based manufacturer. Jung admitted that a joint venture with a Japanese partner could work better and last longer than one with a U.S. company. Siemens is reported to have had in-depth discussions with Motorola, but current thinking seems to point toward a link with Toshiba, although it already has agreements with NEC for mobile infrastructure and with Casio in developing personal digital assistants (PDAs).
