Huawei: We must learn to set higher prices from Apple
Recently, the company has been accused of deliberately reducing the cost of production
/NOVOSTIVL/ Ren Zhengfei, founder and chief executive of Huawei Technologies, said the company should learn from Apple to set higher prices so that "competitors will be able to survive", as the Chinese firm remains on the defensive against US accusations that its products could be used for spying. This article appeared in the South China Morning Post.
Huawei, the world’s largest telecommunications equipment supplier, has long been criticised for undercutting rivals by offering its products at cheaper prices to win contracts. Now, Huawei is refuting claims that it would sell 5G mobile network gear below market prices.
"We will not try to squeeze the market by lowering our prices," said Ren, according to a transcript of his interview with CNN in March.
Huawei’s network gear sales to telecoms carriers have come under pressure in recent years as the 4G market has matured and as the US drummed up its campaign against the company, which is accused of supplying equipment that could be used to aid Chinese intelligence activities. The US has applied pressure on its allies in Europe, such as Germany and the UK, to exclude Huawei from upcoming 5G network roll-outs.
Earlier this month, Huawei said it was expecting growth of at least 10 per cent for its carrier business this year, as mobile network operators prepare to launch commercial 5G mobile services in 2020.
Huawei has already secured 40 contracts to build and operate 5G mobile networks around the world, according to rotating chairman Ken Hu Houkun last week during the company’s Global Analyst Summit at its headquarters in Shenzhen.