By Telecom
Lead Team: ZTE has agreed to buy at least $5 billion worth of chipsets from
U.S.-based Qualcomm and Broadcom over the next few years.
Recently,
Huawei announced that it will award original equipment manufacturer contracts
worth $6 billion to U.S.-based Qualcomm, Broadcom and Avago.
Huawei to offer $6 billion worth deals to Qualcomm, Broadcom and Avago
ZTE has
signed a framework agreement to buy at least $4 billion worth of chipsets from
Qualcomm, which makes chipsets and other technology used in wireless phones,
between 2012 and 2015. It also agreed to buy at least $1 billion worth of
chipsets from Broadcom between 2012 and 2014, according to a report in marketwatch.com.
ZTE is the
second Chinese equipment maker to announce major sourcing deal with American
mobile chip vendors.
Recently,
ZTE and Huawei reported significant increase in mobile phone sales in
the fourth quarter of 2011.
ZTE, Huawei mobile phone sales surge in Q4 2011
ZTE
has sold 56.9 million handsets in 2011, while Huawei Technologies sold 40.7
million devices.
With
these figures ZTE becomes the world’s fifth largest mobile phone vendor. The
firm posted a 71 percent increase in sales of smartphones. In 2011 as a whole,
ZTE had a global market share of 3.2 percent. ZTE’s market share in 2010 was
1.9 percent.
Both ZTE
and Huawei are becoming more aggressive in the U.S. market at a time when they
are facing probe by the U.S. government.
U.S. intelligence probe will assist Huawei and ZTE to prove themselves
The U.S. House intelligence committee’s probe is happening amid
growing concerns over cyber espionage. The investigation would look into
whether the expansion of the Chinese firm in the U.S. posed a security threat.
This procurement agreement strengthens Huawei’s determination to deliver on its
promise to be a local economy contributor, and is a demonstration of confidence
in the long-term relationships we have cultivated with our local high-tech
partners.
In last 10
years, Huawei partnered with 280 U.S. technology providers, with total procurement
contracts exceeding $30 billion. These contracts have covered software,
components, chipsets, and services, and its 2011 procurement in this region saw
an 8 percent increase year-over-year.
