Which company can challenge Huawei in 5G

Samsung executives set the goal: "By 2020, Samsung Electronics plans to have a 20% share of the global communications equipment market." Currently, however, Samsung Electronics only has a market share of around 3% in the telecommunications equipment market. A. Big difference, the author believes, that it takes sufficient determination.

The rise of Chinese telecommunications equipment providers

Prior to 2000, Chinese telecommunications equipment suppliers had very limited influence on the world market. The world's best-known telecommunications equipment providers included Ericsson, Alcatel, Lucent and Nortel. After 2000, Lucent's business began to run into trouble and was eventually merged from Alcatel to Alcatel-Lucent in 2006. Nortel relied on Wimax in 4G technology and eventually Wimax was defeated by the China-led TD-LTE, and Nortel Networks was therefore quick to split and sell the defeated disintegration.

In 2013, Nokia sold its wireless business to Microsoft. Nokia then acquired all of the shares in telecommunications equipment company Nokia-Siemens, owned by Siemens, to form what is now Nokia. In the end, the international telecommunications equipment market remained with two large companies, Ericsson and Nokia.

After China's PHS rose in 2000, ZTE managed to share a big cake and became China's finest telecommunications equipment company at the time. However, due to the enormous revenue from the PHS business, it was also included in the project which brought huge profits and failed to gain a head start in the 3G era.

Huawei couldn't win the big cake when the PHS launched in China. It focused on developing WCDMA technology and was caught in competition with the port network. She was at a low point. However, when the port network was taken over and WCDMA became the mainstream 3G technology in overseas markets, Huawei received a surprise and its overseas sales continued to grow rapidly.

The 2008 financial crisis offered Chinese telecommunications equipment companies an opportunity to move to a higher level. Foreign telecommunications equipment companies ran into trouble after the financial crisis. China built a 3G network in 2009, relying on China, the world's largest telecommunications equipment market. Huawei and ZTE. Communication recovered quickly after the financial crisis. A 4G network was set up in 2014. In just five years, China's continued building of a large cellular network has strongly supported two Chinese telecommunications equipment manufacturers Huawei and ZTE, and Huawei is in the international market. It also continuously won large orders. Eventually, Huawei surpassed Ericsson to become the world's largest telecommunications equipment provider, and ZTE became the fourth largest telecommunications equipment provider in the world.

The pros and cons of Samsung's aggressive telecommunications equipment market

The favorable condition for Samsung is that the current US market for Chinese telecommunications equipment suppliers is difficult to enter due to various factors. The only two major telecom equipment providers, Ericsson and Nokia, have been criticized for not doing well in services and telecom equipment Expensive, which is favorable to Samsung to secure a place in the US telecommunications equipment market. In fact, Samsung has made 5G telecommunications equipment available to Verizon, the largest US operator, and 5G equipment to a small UK operator in the European market. Except outside of the US market, Australia and other markets appear to have such favorable factors.

In terms of technology, Samsung already has a technical advantage: According to ETSI statistics on the 4G standard at the time, Qualcomm, Samsung and Huawei were the top 3 of the 4G core patents. Recently the European telecommunications standards The association showed the ranking of the new 5G patents for air interfaces. The three most important are Huawei, Ericsson and Samsung. This shows Samsung's technical advantages in 4G and 5G core technologies, and the strong technical advantages support research and development of telecommunications equipment.

Recently, Korean media reported that Samsung announced the wireless base station with 5G main network and 3.5 GHz core equipment, which is considered the smallest 5G base product by the International Cooperation Organization for Mobile Communication Standards (3GPP), and which has highlighted 5G telecommunications The equipment has a strong competitive advantage.

What is not conducive to Samsung is that what is currently the world's largest telecommunications equipment market, the Chinese market, may be difficult for Samsung to enter. Although Samsung has made breakthroughs in the European telecommunications equipment market, Samsung can continue to make breakthroughs in the face of giants like Huawei, Ericsson, and Nokia. Doubts and Samsung's telecommunications equipment have not been tested for large-scale commercial use. After using it on a large scale, there will be problems.

Samsung also lags far behind the current four major telecom equipment providers in terms of services, and service is a very important component for operators. The reason Huawei can continue to get large orders for telecom equipment in overseas markets is not only because of its price advantage, it is also far better than Ericsson and Nokia in terms of services. How Samsung can catch up with these telecom equipment providers in terms of services is an issue to face.

Samsung needs enough determination to attack the telecommunications equipment market

It is said that Samsung was able to win a large order for telecommunications equipment with Verizon, the largest US operator, because the telecommunications equipment it provides has a sufficiently strong price advantage. This is a big reason Verizon opened 5G networks in 11 cities and gave 7 of them to Samsung.

On a revenue basis, Samsung's 2017 revenue was $ 223.8 billion and net income was $ 39.46 billion, Huawei's revenue was $ 92.5 billion, and net income was 3 . $ 74 billion. In terms of the specific business, memory chips and OLED panels are Samsung's main sources of profit. Nobody can threaten these two businesses. Indeed, with the support of these core businesses that continue to generate huge profits, Samsung is able to expand into the telecommunications equipment market in the Violent Attack.

Samsung intends to make a difference in the telecommunications equipment market and appears to be fighting back against Huawei. Huawei cell phones continue to grow rapidly and have become the third largest cell phone company in the world. They hope to challenge Apple and Samsung to become the world's largest mobile phone company in the next few years. If Samsung attacks the telecommunications equipment market, it will force Huawei to reverse and cement its advantages in the telecommunications equipment market. To ease the pressure that Huawei's Samsung is facing in the cellular market.

However, as mentioned above, Huawei has a solid competitive edge in the telecommunications equipment market with years of hard work. Samsung needs to make more efforts to share the telecommunications equipment market and is poised to take the loss of profit. In fact, Huawei has actively responded to Samsung's attack on the telecommunications equipment market. The company recently announced its entry into the Korean telecommunications equipment market and intends to win contracts from the three major Korean operators at a bargain price. Huawei and Samsung seem to be doing a difference in the telecommunications equipment market. Face to face competition.