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Huawei eyes US enterprise market despite political challenges

Michael Kan | April 24, 2015
Past political trouble in the U.S. isn't stopping Huawei Technologies from selling its enterprise services in the country.

IDC analyst Matt Eastwood said Huawei's best chance to expand is to target emerging markets. In many of these countries, the company already has strong relationships with local mobile carriers through its networking business.

As for the U.S., Huawei probably won't have an easy time finding customers.

Certain sensitive U.S. industries, such as government, aerospace and defense, will prefer to buy from U.S. companies, Eastwood said. However, there are plenty of other industries such as retail, hospitality, and wholesale services, that are focused on buying IT products with the best value.

The greater challenge for Huawei is trying to surmount existing competition from the likes of Cisco and EMC. "Enterprise IT users are slow to change brands," he added.

U.S. trade relations with China also remain testy. Earlier this year, the U.S. blocked Intel from selling chips to Chinese supercomputing centers, claiming that the processors were being used for nuclear testing.

"If anything, the situation is worsening, not improving," Chang said. "The U.S. political climate could change, but right now it's still hard for Chinese companies."

 

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