Fergie's Tech Blog

Pressure Piles on Huawei, ZTE

Ray Le Maistre writes on Light Reading:

Evidence is emerging that influential Chinese telecom equipment vendors Huawei Technologies Co. Ltd. and ZTE Corp. are facing unprecedented financial and competitive pressures that will weigh on future growth -- and reduce profits in the immediate term.

The two companies have changed the shape of the international telecom supply industry in the past four years and have become known for their effective and efficient R&D processes and competitive pricing. That's resulted in stellar growth, but the global price war it created may finally be catching up with them as profit margins plunge, sources say.

posted by Fergie @ 7/18/2006 10:02:00 AM