Before the brand became a multinational corporation, Gigaset started as an arm of one of the biggest tech companies in Germany, Siemens. It started as the Siemens Home and Office Communication Devices department. This communications department has roots dating back to 1948 when Siemens released its first telephone. Despite this long-time history in the industry, the true birth of Gigaset occurred in 2008 when Arques Industries bought 80% of the Siemens tech arm. The new company was renamed Gigaset, harkening to its most popular product.
The Goldin Group later bought 55% interest in the company in 2013. Since then, the brand has grown beyond the telephone market. Based in Bocholt, Germany, the tech brand now also sells smart home products, smart security, VoIP telephones, cordless phones, and business telephony solutions.
Coming From the Siemens Brand
Before it became Gigaset AG, the company operated under Siemens Home and Office Communications Devices GmbH & Co. KG. Since 1941, it has researched and worked on manufacturing cordless phones under Siemens. Siemens AG is a German brand of tech products that produces a variety of products, including telecommunications equipment. The company produced its first telephone in 1948 and transmission equipment a decade later.
Siemens set up a Bocholt-based Research & Development center in 1982. After eleven years of research and design, the brand began producing cordless telephones with the DECT standard. The Digital Enhanced Cordless Communications radio standard or DECT is something the company developed for wireless communication that’s used worldwide today. In 1997, the firm formed a new production facility with an area of 10,000 square meters. At the start of the 21st century, it began the production of GSM or Global System for Mobile Communication products. These were mobile devices that communicated with cell sites and used voice and data input/output.
The Siemens telecommunications arm also manufactured WiMAX and IP phones in 2005. Because of the popularity of their Gigaset phones, the phone brand reached its 100 millionth production in 2007. Before it became an independent company, it was a troubled business in early 2008. In October 2008, the private equity firm Arques Industries, based in Munich, bought an 80.2% equity interest in the Siemens telephone manufacturing unit from Siemens AG for 45 million euros (or under $48 million).
After the Arques acquisition, the brand stayed within Germany, with its headquarters in Bocholt, where most of its manufacturing takes place. The business was initially renamed Gigaset Communications a year after the acquisition, taking inspiration from one of its popular phone lines. Its production of Gigaset phones continued, leading to the 150 millionth production of the model in 2011. At this point, the brand had expanded its production to other telecommunications devices and services, including smartphones and VoIP phones.
In 2013, the Goldin Group acquired a 55.5% interest in Gigaset AG. Goldin Group is a Hong Kong-based multinational company with core businesses focused on financial services, consumer electronics, and property.
In 2014, the company installed a U-shaped line for the lean manufacturing of products like Maxwell 10. The Maxwell 10 was a complex telephony product designed for professional or business use. The company also began incorporating newer manufacturing and assembly installations. An excellent example was Gigaset’s human-robot collaboration (HRC) line in 2016. The new assembly system pushed the brand into producing its 200 millionth phone only one year later. After three years, its 220 millionth phone was announced, marking the demand and popularity of the brand.
Trading Publicly
Shares of Gigaset AG are on the Frankfurt Stock Exchange for public trade, listed under the stock symbol GGS. The company’s IPO or initial public offering was on April 14, 2004. It also exchanges on the stock exchanges for Berlin, Dusseldorf, Hamburg, Munich, and Stuttgart.
Company Acquisitions and Agreements
We couldn’t find more data on the acquisitions the company has made over the years based on our research. The only information we have refers to Gigaset Communications GmbH as a subsidiary of Gigaset AG.
In 2020, Gigaset Communications GmbH made a partnership with Unify Software and Solutions GmbH & Co. KG. The agreement involved Gigaset purchasing licenses for interfaces and software components for 15 million euros (about $16 million).
Scandals Involving the Company
Our research hasn’t led to any significant problems or scandals Gigaset has faced that involved risking the safety and security of its customers.
Some legal disputes we could find involved its subsidiaries. For example, its Spanish subsidiary, Gigaset Communications Iberia, was issued with a fine of 2.0 million euros. The basis for the administrative fine was the objection of the Spanish tax authorities to one of its tax assessments.
How the Tech Company Endured the Pandemic
Following the boom of the COVID-19 pandemic, Gigaset incurred a consolidated net loss of 10.4 million euros (about $11.1 million) for 2020. With the challenge of handling the pandemic, the demand for its products in international markets declined. The company decided to increase its production of easy-use phones, design phones, and smartphones instead to make up for the 12.7% revenue decline for standard phones. It launched the GS3 and GS4 smartphones, which drove the smartphone market in 2021, leading to the success of the GS5 smartphone launch.
Another market that had an initial crash followed by a surge was the smart home business. In 2020, the company experienced a 40% decline in revenue in the segment. In 2021, its core markets (Germany, Switzerland, and the Netherlands) realized the need for home security. To provide for this demand, Gigaset added a smart doorbell to its smart home product portfolio. Similar prospects came in cloud solutions and professional (B2B and B2B2C) businesses.
It wasn’t long before success found Gigaset because of its continuous marketing and product improvement. In 2021, the German tech company generated 217.1 million euros (or $231 million) in revenue, a positive outlook after the crash caused by the COVID-19 pandemic.
What Gigaset Covers Today
Gigaset’s first offerings remain a part of its consumer product portfolio. It provides various telephone types, including VoIP, handsets, cordless, and corded phones. The company also complements its telephone market with the corresponding accessories and spare parts. On the smartphone front, it provides business smartphones, elderly mobile smartphones, and accessories.
With the modernization of the typical consumer home, Gigaset has also realized the demand for smart home products. Today, it provides smart security products like sensors and alarm systems. It also has smart care and smart comfort products. Examples include an elderly assistance system and intelligent heating control, respectively.
In the professional market, the company’s offerings range from smartphones to telephones and desktop phones. It also provides systems for scaling a business, office communication, and more.
