Several announcements in recent times indicated that Huawei Technologies is making marked inroads into the Australian technology market.
Huawei not a household name. Yet. But they seem to be selling very well around the world, in the pre-consumer sphere.
They’re a Chinese telecommunications hardware manufacturer. The signs are that they go in cheap – possibly ultra-cheap – with a product range that is not quite as reliable as their better known competitors. If their reliability is at issue, then for major telcos to take the plunge they must be seeing severe cost savings.
So if your telecoms infrastructure is hiccupping, the reason may be that service quality is the end cost of driving prices down.
Of course, this scenario is familiar. It’s the path taken by Japanese manufacturers in the 50s and 60s. Sell cheap, build up a brand name, and slowly ramp up the technology on the back of success.
And look what that did for Japan.