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BenQ changes it up and spins off the brand, keeps manufacturing
Fighting hard to stay alive after the BenQ Mobile fiasco, BenQ has switched things up by deciding to spin off its BenQ brand and hold onto its manufacturing business, instead of doing things the other way around as most analysts expected. According to BenQ chairman K.Y. Lee, it was a bit of a no-brainer: "The scale of the branded business has become relatively small compared to our integrated manufacturing service business. Therefore, it is a straightforward decision to spin-off the branded business." Lee will be leading both companies, with the manufacturing arm -- which does contract work for heavyweights such as Dell and HP, and accounts for 60 percent of BenQ revenue -- taking on the new name of "Jia Da Corp." after the spin-off. The new, fabless BenQ will stick to product design and engineering, while Jia Da Corp. will try to make its buck in the cut-throat world of ODM, something which Lee once dismissed as a viable way to survive. Arguably, BenQ couldn't be doing much worse than it's doing right now, so we're content to sit and watch how it all plays out.
