Siemens Cell Phones in Hungary?
>> Siemens Cell Phone Unit Considers Job Transfers to Hungary
Christoph Hammerschmidt
Munich, Germany
EE Times
Mar 12, 2004
commsdesign.com
Despite a vibrant European market and recent market-share gains, mobile phone handset maker Siemens ICM is considering the transfer of jobs from Germany to low-wage countries like Hungary. A spokesperson acknowledged such considerations but added no imminent moves are planned.
As many as 3,000 jobs are reportedly on the verge of being transferred to Hungary, with most moving from German factories at Bocholt and Kamp-Lintfort, where Siemens produces mobile phones and DECT phones.
"We do not have any imminent plans to cut or move any jobs. This are just considerations," the spokesperson said. "Our concern is to get into talks with the workers' [representative] in order to reduce costs."
The trigger for considering the move is growing price pressure Siemens sees in the cellphone market. "Each year the pressure on pricing increases," the spokesperson said. Even with the automation of Siemens' handset production, labor costs weigh heavily on overall price.
Few observers thinkg the current market situation is behind Siemens' price concerns. As recently as this week, market researchers Gartner adjusted its market estimates towards the high end. Last year Siemens gained market share, first in eastern Europe, while bigger companies, including Nokia and Motorola, lost market share.
Hence, observers think Siemens may also be trying to broaden its brand name to extend beyond Germany. "We generate just about 17 percent of our revenue in Germany, but we still have 50 percent of our labor force here," the company spokesperson said.
The council representing Siemens workers declined to comment. A council spokesman said it would address the issue at an April 1 news conference. <<
Christoph Hammerschmidt is editor-in-chief of EE Times.de.
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