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 BenQ: DVD+R Format Will Dominate

Posted by: Ed on Sep 29, 2003 - 11:29 AM
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K.Y. Lee the chief executive of BenQ has plans to make the brand, a former subsidiary of Taiwanese computer maker Acer, as recognized around the world as Sony is today. There are three areas seen as particularly significant for his company's growth: liquid-crystal displays for notebooks and LCD TVs; DVD drives; and mobile phones. In DVD drives, Lee is a believer in the DVD+RW format, not in the rival DVD-RW format or in combination drives that can handle both. "We see today the momentum for DVD+RW is much stronger than for DVD-RW. I cannot say (it will) win, but it will dominate," he said.

For future optical-storage products, BenQ is aligned with Philips and several other consumer electronics companies behind the Blu-ray Disc technology, not the rival Advanced Optical Disc from Toshiba and NEC.

And in phones, BenQ plans to add more sophisticated models. The company will launch its Symbian-based smart phone in the fourth quarter, Lee said, with a Microsoft Windows-based model in mid-2004.

Working with Microsoft has been mixed, Lee said.

"They need some time to learn about the phone market. They are trying to adapt the PC approach to the phone market, but that doesn't work," he said. For example, Microsoft previously mandated a specific screen size, he said, but phones must be able to use a wide variety.

Microsoft is coming around, though. "Now they are trying to be more flexible. After that adjustment, they should have a good opportunity in the future," Lee said.

While BenQ sells displays and DVD drives in North America today, phones aren't yet a priority for Lee in that market. In China, too, where Lee says eager companies have flooded the market with products that now sell at deep discounts, BenQ is taking a more conservative approach.

It's an example of Lee taking the long view, despite his grand aspirations. "This is a long journey. We don't expect we can be successful overnight."




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