According to News.com, Cisco is facing competition from Dell (no surprise) and Chinese manufacturer Huawei. It writes:
As much as Dell is a U.S. threat, Huawei, which makes all the same gear, worries Cisco overseas, especially in Asia, analysts said. And it wants to build its presence in the United States.
“Huawei may have the same long-term impact on the networking market that Toyota and Honda had on automobiles,” CIBC World Markets analyst Steve Kamman said, adding however, that it will take time for the Chinese company to gain a significant U.S. foothold.
Kamman, who recently visited China, does not own Cisco stock and CIBC does not do banking work for the company.
Founded in 1988 by a former officer in the People’s Liberation Army, Huawei expects 2002 sales to rise almost 25 percent to $3 billion, thanks partly to growing exports outside of Asia.
“This is a time for Huawei to enter developed countries. At this time, the economy has slowed down,” company Executive Vice President Fei Min said recently at its Shenzhen, China, headquarters.
Huawei is a good example of a company which has used R&D and low-prices to climb up the networking value chain.