U.S. Congressional Report: Huawei and ZTE pose a threat to National Security
posted by Alan F. / Oct 08, 2012, 6:45 AM
Both firms are known for their low priced smartphones although each has been looking for ways to crack the high-end U.S. Market. ZTE in particular has been growing rapidly and according to Reuters, is now the world's fourth largest phone producer, planning on doubling shipments this year to 40 million units. ZTE ranks fifth in the sales of telecom equipment. Owned by its employees, Huawei is the second largest manufacturer of routers, switches and telecom equipment by revenue. It is the sixth largest mobile phone producer. In the U.S. mobile phone market market, ZTE and Huawei rank sixth and eighth respectively.
Both companies have been looking to expand in the states. Huawei gets 4% of its revenue from the U.S. while ZTE gets 2% to 3% of revenue from the states. The issue could make it difficult for Huawei to go public as it has been considering. ZTE shares are already listed for trading. The latter has released a letter it sent to the committee in September, disagreeing with the report's conclusion that it is influenced by the Chinese government. Huawei spokesman William Plummer issued a statement to Reuters denying the allegations.
Nomura Securities analyst Huang Leping said that the damage to both companies will be limited if the report focuses on telecom equipment, but would be damaging if it refers to handsets. Speaking of which, Huawei recently manufactured the latest myTouch and myTouch Q models for T-Mobile while the ZTE Athena is expected to be the world's thinnest smartphone at 6.2mm when it is eventually launched.
Posts: 1482; Member since: Sep 30, 2009
posted on Oct 08, 2012, 7:30 AM 0
Posts: 418; Member since: May 04, 2012
..but almost everything was made in China...
posted on Oct 08, 2012, 7:50 AM 7
Posts: 364; Member since: Sep 29, 2011
It's not their mobile products that pose the threat.. They're one of only a handful of companies that have the technology to build 4G networks. Sprint tried to contract them for that very thing.. the U.S. government stepped in and killed the deal. The reason being that any company inside of socialist China can be mandated by their government to do their bidding. Imagine all the data that gets passed over wireless networks. Now imagine all that data in the hands of the Chinese government. Scary.
posted on Oct 08, 2012, 1:13 PM 0
Posts: 6; Member since: Sep 19, 2012
remember CarrierIQ recording every keystroke in your phone? US government is bunch of liars.
posted on Oct 08, 2012, 8:24 AM 7
Posts: 92; Member since: Nov 09, 2011
I think those companies are doing good by selling cheap phone and no expensive iPhone
posted on Oct 08, 2012, 9:49 AM 2
Posts: 18; Member since: Apr 26, 2009
Only further keeps me from selling their products. I've seen Huawei since it came to the states, and their products have been consistently garbage, along side ZTE which never made anything worth writing home about. But they're always at least $50-$100 cheaper than any nice Android in the market. Their biggest partners were always super cheap carriers (Metro PCS, Cricket, T-mobile), taking advantage of people who aren't the smartest shoppers by selling "awesome Androids for $50!" They've been a thorn on my side for so long due to the poor quality of their handsets. They've always cut corners such as horrible battery, dim displays, and cheap knockoff processors to get to those prices. I seriously hope this means I won't have to ever deal with their products again in the future.
posted on Oct 08, 2012, 10:44 AM 1
Posts: 11; Member since: Oct 07, 2012
The US committee only 'advises' not to buy Huawei or ZTE's products. Why only 'advise' and not 'banned'? It kind of tells you that they don't have a particularly strong case to back up their accusations and it is in fact all down to politics, racism, protectionism and pampering to Cisco! Funny how they do not advise US citizens and firms not to buy Chinese made Apple iPhones and the countless number of other Chinese manufactured telecoms equipment.
posted on Oct 08, 2012, 9:11 PM 2
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