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materialgirl 12/5/2012 | 3:48:23 AM
re: Pressure Piles on Huawei, ZTE Wow! That was a big read. Good work. It also shows that over time, you dont' get something for nothing. That long tax tale also shows how crafty those Chinese are at maintaing appearances. They have 1000s of years of experience.
gzkom 12/5/2012 | 3:48:22 AM
re: Pressure Piles on Huawei, ZTE I read an article that said every engineer in Huawei has a portable matress under the desk in the office in order to be able to work 20 hours a day.
LaoDian 12/5/2012 | 3:48:22 AM
re: Pressure Piles on Huawei, ZTE
By all means, Huawei and ZTE are still half state owned, and may be pushed to merge by the goverment, as overlapping products and excessive competiton between them may be considered by the Chinese goverment as "waste of resources".
Ben_Stern 12/5/2012 | 3:48:21 AM
re: Pressure Piles on Huawei, ZTE "That shows how important it is to understand the differences between the western and eastern culture."

True, and apparently both companies are saving a bundle by not providing dental insurance. Not necessary in the far east culture. Otherwise their overall margins would be even lower.
multithreaded 12/5/2012 | 3:48:21 AM
re: Pressure Piles on Huawei, ZTE That shows how important it is to understand the differences between the western and eastern culture.

In china, people like to take nap in the noon. The matress is for noon nape NOT for the evening sleep.

Belzebutt 12/5/2012 | 3:48:20 AM
re: Pressure Piles on Huawei, ZTE I also thought this was a particular good article from LR.
Scott Raynovich 12/5/2012 | 3:48:19 AM
re: Pressure Piles on Huawei, ZTE Call me an optimist, but maybe this is good news?

If indeed the Chinese government responds (albeit slowly) to international trade pressure, Huawei and ZTE will be forced to operate in a more controlled, and profitable, manner. If subsidies are indeed rolled back, I imagine that they will have to slow price cuts, and possibly, in the end, firm up their pricing.

This combined with more consolidation should eventually return the industry to a more stable state. Yes?

razeredge 12/5/2012 | 3:48:19 AM
re: Pressure Piles on Huawei, ZTE It is a good article. But would this story/scenario not apply to any new vendor entering new markets?

A new vendors success will be met, in time, by competitors as they adjust to defend market share, which in turn puts pressure on everyone (how about an article on Nortel's financials?).

Every vendor feels the squeeze, driving the vendor consolidation we see. As this unfolds, prices will increase, as will profits for vendor survivor profits.

My guess is Huawei will be one of the few survivors. JMHO

Razer
Peter Heywood 12/5/2012 | 3:48:18 AM
re: Pressure Piles on Huawei, ZTE Although this article points to some evidence of price competition getting less severe in Europe this year, the poll on pricing that we've been running in anticipation of this story shows the reverse - more people say price competion has got tougher than softer this year. See:

http://www.lightreading.com/su...
tty 12/5/2012 | 3:48:17 AM
re: Pressure Piles on Huawei, ZTE In my knowledge, Huawei is almost 100% private; ZTE is about 1/3 owned by state.

It may also explain why Huawei is more competitive.
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