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Huawei, Zte Beat The Domestic Market, Foreign Investors Beat Ericsson by sgbvdf asga





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Huawei, Zte Beat The Domestic Market, Foreign Investors Beat Ericsson by
Article Posted: 09/27/2010
Article Views: 98
Articles Written: 2044
Word Count: 602
Article Votes: 0
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Huawei, Zte Beat The Domestic Market, Foreign Investors Beat Ericsson


 
Business,Business News,Business Opportunities
And ZTE (ZTE) around the world have achieved some success, but has long been the poor performance at home. But now, as government support for new wireless technologies and companies to take the price much lower than competitors in a positive strategy, the two companies are the world's largest mobile subscriber market competitors.

The next three years, China will 3G Wireless networks, spending 59 billion U.S. dollars. Huawei and ZTE in this battle is already ahead of Ericsson (TelefonABL.M.Ericsson), Alcatel-Lucent (Alcatel-LucentSA) and Nokia Siemens Communications (NokiaSiemensNetworks) and other large foreign companies. 3G technology provides Internet access into the wireless video and high-speed data services.

Of about 659 million Chinese Mobile Users, is a global telecommunications equipment company and defend. In other weak sales growth in many markets the occasion, 3G's launch of these companies is even more important.

Industry and Information Technology Ministry estimates that this year China's investment in the 3G network is about 170 billion yuan, or about 25 billion U.S. dollars, is 400 billion yuan during 2011 is expected to nearly half the amount invested.

Analysts said Huawei and ZTE in 3G market in China within the next few years, the overall share of revenues could double, reaching more than half. Present their existing wireless network construction in China's income share of only 25% to 35%.

Research WedgeMKILLC analyst in Beijing, said Zhang Jun, Huawei and ZTE's offer lower, but also to provide quality services.

Zhang Jun said that the major foreign companies, Ericsson's market share is relatively stable, while Alcatel Lucent and Nokia Siemens's market share is declining. Nokia, Nokia Siemens Communications (Nokia) and Siemens (Siemens), a joint venture.

In the early 90 century, China started construction of the existing wireless network, established in 1988, Huawei and ZTE in 1985 is still very weak and does not constitute a real threat. Ericsson and other long-established foreign enterprises to obtain most of the early contracts with Chinese state-owned telecom operators to establish a close relationship.

Beijing-based research BDAChina Chairman Duncan Road, Clark (DuncanClark) said Huawei and ZTE are forced to focus to overseas because the domestic market has been carved out.

Chinese companies invested enormous energy to the development of 3G technology in Europe and some Asian countries have launched the beginning of this century this technique. According to analysts and industry executives said today Huawei and ZTE are lower than the competitor's price quotes from up to half of the sales of 3G equipment in China.

Although these companies do not disclose specific pricing information, but analysts said the lower cost suppliers in China for market share is more interesting than the profit. McGregor Consultants Ltd. (JLMcGregor & Co.) Analyst in Shanghai Chen Hao Zhang (sound), it is now in the stage of China's market share, currently on them, it is more important than profit.

Years ago, Huawei is responsible for human resources and R & D departments Wu Jianguo said that the European telecom equipment supplier Huawei R & D personnel costs higher than 6 times.

As a non-listed enterprises, Huawei also greater flexibility to operate under a lower profit margin, not by shareholder pressure. The face of this company a majority stake held by the employees, but the exact ownership structure is opaque.

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