18 Mar

Why Cisco Thinks US Should Leave Huawei Alone

WRITTEN BY Ruchi Gupta

America leading anti-Huawei push

Cisco Systems (CSCO) CEO Chuck Robbins suggested in a recent media interview that the ongoing push by some Western governments to exclude Huawei from supplying equipment for the building of their 5G networks was unnecessary, according to a Bloomberg report. The United States is leading a push against Huawei, and several American allies have heeded the call and banned Huawei technology from being used in their 5G network rollout.

The concern cited in the anti-Huawei movement is that the company could provide a backdoor for the Chinese government to spy on countries using its network products.

Why Cisco Thinks US Should Leave Huawei Alone

Global infrastructure built on a mix of tech

According to the Cisco executive, it is not possible for Huawei to dominate the market for 5G equipment as feared. The executive pointed out that the world’s telecom infrastructure as it stands currently is built on a mix of technology sourced from different places like the United States, Europe, and China.

Huawei is the world’s top vendor of telecom equipment and had a 28% share of the global market in 2017, according to data from IHS Markit. Ericsson (ERIC), Nokia (NOK), and Samsung (SSNLF), the other major vendors of telecom equipment, captured 27%, 23%, and 3.0% of the global market, respectively, in 2017.

Cisco and Huawei are fierce competitors

Huawei is not only the top telecom equipment vendor, but it is also a leading supplier of core network gear such as routers and switches. Therefore, it is one of Cisco’s top competitors. Cisco made a profit of $2.8 billion in its second quarter of fiscal 2019, the period that ended in January. Arista Network (ANET), another prominent Cisco competitor, made a profit of $170.3 million in its fourth quarter, which ended in December.

Latest articles

19 Jul

Afya's IPO Sees Strong Listing Gains

WRITTEN BY Mohit Oberoi, CFA

Afya (AFYA) listed on the Nasdaq Global Select Market on July 19. The company priced its IPO at $19 per share.

19 Jul

What to Watch For in Amazon's Q2 Earnings

WRITTEN BY Sanmit Amin

e-Commerce giant Amazon (AMZN) is scheduled to report its second-quarter earnings results after the closing bell on July 25.

19 Jul

Barrick Gold Reaches Deal to Buy Acacia Mining

WRITTEN BY Anuradha Garg

After a long standoff, Barrick Gold (GOLD) and Acacia Mining (ABGLF) have reached an agreement.

19 Jul

Comcast Shares Pop on Goldman's Optimism

WRITTEN BY Ruchi Gupta

Comcast (CMCSA) shares popped after Goldman Sachs issued a positive note on the company recently. Goldman upgraded its rating for Comcast to "buy" from "hold."

19 Jul

Why Analysts Are Bearish on Netflix Stock

WRITTEN BY Aditya Raghunath

Netflix stock fell over 10.0% on Thursday and is down 0.5% today as well.

On Thursday, pet retailer Chewy (CHWY) reported its first-quarter results after the market closed. The company reported its earnings for the first time.