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Huawei denied the "Hell price" runs on other CDMA vendors - Huawei, CDMA, ZTE - Communicat

By: HotBoy

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Alcatel-Lucent, ZTE Before six major CDMA vendors
China Telecom Submitted the CDMA network construction program and final offer,
Huawei Reported less than 700 million yuan out of super cheap, and Alcatel-Lucent reported a difference of 14 billion yuan out of 20 times.

Li Wei, a senior equipment manufacturers (a pseudonym) to the newspaper, said China Telecom in this

Tender Budget of 100 billion yuan, "Huawei to do so, not only below the cost of the" floor price ", also below the enclosure," cellar price, "created" Hell price "."

But the idea was a Huawei official denial, "Although our offer is lower than foreign firms, and domestic manufacturers, but almost."

Reporter was informed that the other domestic manufacturers ZTE's offer of 7.0 billion -80 billion; foreign manufacturers, Nortel offer 12 billion, Alcatel-Lucent reported 14 billion.

"Hell price" squeeze on the others?
"China Telecom, the target of 100 billion yuan, according to wireless products 40% to 50% of the gross margin, Huawei reported a 690 million ultra-low-cost, potential loss of up to 50 million." Wei said, according to Huawei 5% last year, net profit calculation, Huawei's equipment to sell 100 billion yuan to cover the loss.

In fact, the telecommunications equipment industry, the weak low-cost manufacturers bid "enclosure" phenomenon is not uncommon, many companies enter the market through low-cost, post-expansion through greater cost recovery front. Expansion process in the GSM, ZTE, Huawei has also repeatedly been used in some provinces and cities this strategy.

"However, this phenomenon usually appears in the local provinces and other mostly small tender process, and most of the equipment cost basis, only part of the gift, has been called the" floor price "," cellar price, "the. While a more than 100 billion national equipment bidding process, the newspaper quotes a close to zero, is simply "hell price", it is to squeeze out all others. "Wei said, not without emotion.

Low Price Huawei officially denied For "Hell price" embrace the subject of accusations, Huawei official responded, "Although our offer is lower than foreign firms, and domestic manufacturers, but almost." His and that "other manufacturers offer only lower than us, it is little higher than we are. "But the company did not disclose the specific amount should be marked.

Reporter was informed that Huawei reported that the price is 6.9 million, the other domestic manufacturers ZTE's offer of 70-80 million yuan, foreign manufacturers, Nortel offer 12 billion, Alcatel-Lucent reported 14 billion.

Insiders disclosed that Huawei Huawei does this quote was "quite low." Huawei great importance to this tender, not only because of China Telecom CDMA expansion of this tender for 81 major cities, is known as "the world's largest CDMA tender years", more importantly, China Telecom, Huawei hopes to become a long-term strategy for network evolution

Cooperation Partners. "Aggressive pricing strategy by the end of potential competitors in the domestic repression, weakening the current troubled Alcatel-Lucent, Nortel, can be said that a chain of risk capital, but the market is very lethal CDMA industry chain strategy is the real "backing" of the Henzhao. "Wei said that Huawei's report carefully, you will find behind the rapid development of Huawei, a number of financial indicators quickly down??? Huawei's operating margin from 19% in 2003 to 7% in 2007, net profit margin dropped from 14% to 5%. On the other hand, Huawei's assets and liabilities at the higher rate: 2005, Huawei control debt ratio below 50%, reached in 2007 67%.

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If the insight into the Huawei of China Telecom CDMA expansion in the first single on the "ambition"

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