Huawei’s Mobile Infrastructure Star Is Rising as Alcatel-Lucent’s Declines
- Posted: Sunday, September 21, 2008
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- Author: pradhana
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- Filed under: Miscellaneous
Ericsson leads the world’s mobile infrastructure market, but it faces stiff competition from Nokia Siemens Networks and Alcatel-Lucent as well as from some Asian vendors, especially a buoyant Huawei.
“As of 1Q 2008, Huawei owned almost 8% of the world’s cellular infrastructure market, compared to Ericsson at nearly 29% and Nokia Siemens at more than 23%,” says ABI Research senior analyst Nadine Manjaro. “But don’t be deceived by that disparity: Huawei is the vendor to watch, given its overall increase in market share over the last six quarters. And squarely in its sights is the number three vendor, Alcatel-Lucent, with a market share just over 13%.”
In the second quarter of 2008, Alcatel-Lucent suffered one of its worst quarters since its merger. During the first half of 2008, the company’s wireless infrastructure shipments decreased 63% compared to the second half of 2007. Two of its top customers in North America – Sprint and Verizon Wireless – completed EV-DO Rev A deployments, which led to decreased CDMA spending. Sprint alone reduced CAPEX by $1 billion compared to 2Q 2007.
“China is the leading wireless market and its top three operators plan to spend close $80 billion on infrastructure over the next three years,” continues Manjaro. “This, along with strong growth in India and Africa, might catapult Huawei into the lead within three to five years. At the very least, Ericsson is not likely to be in any kind of ‘comfort zone’ as it tries to face down the growing threat from the muscular Chinese giant.” [ABI Research]
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