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12/5/2012 | 5:14:03 PM
re: Huawei Annual Revenues Hit $28B

One thing which can be learned here. Chinese vendors around +double digits. Western vendors around +0.

Who can explain the following: Equipment consists out of components. Components is an international market and as such as expensive for Chinese as for Western vendors. The stuff is made by automated pick and place machines.

Chinese are not known to be best class in on Quality (yes that is that thing everybody say he needs but does not want to pay for).

So the only thing more expensive for the Western vendors is engineering cost. Which is normally written of over thousands and thousands of products and should make a marginal difference on the end user price.

Nevertheless double digit figures. THIS REALY STINKS.


12/5/2012 | 5:14:02 PM
re: Huawei Annual Revenues Hit $28B

Using the correct exchange rates Ericsson grew 10,2% in USD 2009 to 2010.

Ericsson had revenues in 2010 of 203B SEK = 31,3B USD at a SEK/USD rate of 6,44.

2009 Ericsson had revenues of 206,5B SEK = 28,4B USD at a SEK/USD rate of 7,26.

Be sure to compare apples with apples!

Hassene Akkeri
Hassene Akkeri
12/5/2012 | 5:13:47 PM
re: Huawei Annual Revenues Hit $28B

Equipment consists of components, this is true. They are as expensive for western vendors as for chinese', this is also true. As you said, engineering represents another important factor in pricing. However:

1- pricing is affected by much more factors than components and engineering,

2- business development does not only depend on price.

The reason of the double digit business progression of the chinese vendors is complex. First, they propose much cheaper products due to the cheap workforce and production/delivery facilities. Second, they enjoy a very strong financing backup from chinese banks that allows them to do effective technology research under relaxed context. It also allow them to do business development while proposing creative business models to telecom operators: such as projects financed by chinese government, revenue share and so on.

On the other hand, the joint ventures between Nokia/Siemens and Alcatel/Lucent cannot be considered as real successes. The resulting suppliers are facing serious tactic and strategic problems since then, which has affected the scope of their technology and even the quality of their roadmaps. Not to mention the financial recession effect, which came at a crucial moment, few years after the NSN and Alu joint ventures creation and in a hard structuring context.

The subject is complex and needs more thorough analysis. Yet, if we transpose these numbers to the economic growth figure, we find almost the same thing: double digit growth for China and zero to three growth rate for western countries.

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