BenQ's takeover of Siemens' mobile phone unit is having an influence on BenQ's OEM/ODM business. Kyocera is said to have already halted all negotiations with BenQ regarding possible future orders. Currently, BenQ is manufacturing a value-line CDMA mobile phone for Kyocera, which Kyocera wants to introduce in emerging markets such as Latin and South America and India. BenQ will start delivery to Kyocera of approximately five millions units in July and August 2005. Delivery of this order will still proceed according to the original agreement, but after its completion Kyocera will likely end this relationship with BenQ.

 

Nokia is also likely to turn away from BenQ after existing orders have been completed. Nokia has already started preliminary talks with other Taiwanese mobile phone ODMs for possible future cooperation. Presently, BenQ is manufacturing the clamshell 3128 model for Nokia, which Nokia is selling on the Chinese market. Nokia and BenQ have agreements in place for three other mobile phones, including a value-line version of the 3128, a clamshell camera phone, and a smartphone. Nokia has canceled its order for the clamshell camera phone, but as it now stands BenQ will still manufacture the value-line version of the 3128 and the smart phone according to the original agreement.