After cutting 5,000 jobs, Siemens Mobile is prepared to leave the phone industry due to struggling profits and the increasingly competitive marketplace. Being the fourth largest phone manufacturer with 7.6% market share, Siemens is looking for a joint partner, much the Sony Ericsson agreement, to save its struggling division rather than abandon it completely.

Heinrich von Pierer, Siemens CEO, said earlier, "Either the situation has to be fixed or we have to find a partner for cooperation. We have to fix, close or sell."

Rumors have circulated that Japanese electronics company NEC and Chinese manufacturer Ningbo Bird are interested, however both have denied such allegations.

Siemens will announce its final decision on January 27 following its annual meeting.