Research firm: Huawei the one to watch: Chinese vendor gunning for Alcatel-Lucent

A Chinese company is becoming a major player in the mobile infrastructure market, according to a study from ABI Research.
Huawei Technologies Co. Ltd. is emerging in the market that has been dominated by L.M. Ericsson, Nokia Siemens Networks and Alcatel-Lucent.
As of the first quarter of this year, Ericsson owned nearly 29% of the world’s cellular infrastructure market, followed by Nokia (23%) Alcatel-Lucent (13%) and Huawei (8%), according to a news release.
“Don’t be fooled by that disparity. Huawei is the vendor to watch, given its overall increase in market share over the last six quarters,” Nadine Manjaro, said ABI Research senior analyst. “And squarely in its sights is the No. 3 vendor Alcatel Lucent.”
In the second quarter of this year, Alcatel-Lucent suffered one of its worst quarters since the two companies merged nearly two years ago. For the first half of 2008, the company’s wireless infrastructure shipments decreased 63% when compared to the second half of 2007, according to ABI.
Manjaro said Huawei will continue to gain market share as the top three operators in China spend close to $80 billion in infrastructure in the next three years.
“This, along with strong growth in India and Africa, may catapult Huawei in the lead within the next three years to five years,” she said. “At the very least, Ericsson is not likely to be in any ‘comfort zone’ as it tries to face down the growing threat from the muscular Chinese giant.”