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Siemens to decide fate of mobile phone unit

Tuesday 14 December 2004 12:50

German electronics firm Siemens could decide on the future of its mobile phone manufacturing division as early as January, a company spokesman has said.

"We are waiting for all the units within our newly merged communications group to submit budgets before we make a decision," he said. "This process should be finished by the end of January."

The spokesman denied a news report in the Sunday edition of German business newspaper Frankfurter Allgemeine Zeitung which claimed that Siemens had already reached a decision to sell its mobile phone business to China's Ningbo Bird Company. The Chinese company has a distribution agreement with Siemens in China.

"We have not made any decisions yet," the spokesman said. "We have a few options: we can co-operate with another company, restructure the mobile phone business or sell it."

A spokesman for Ningbo Bird declined to comment.

John Blau writes for the IDG News Service (Paul Kallender contributed to this article)