As a company that has been striving to really break into the U.S. consumer market, Huawei Technologies may have stumbled upon the perfect opportunity. Earlier this week it was reported that they were in talks with T-Mobile, the fourth largest cell phone provider in the States. Previously, Huawei Technologies has been known for providing advanced networking equipment for industrial use. Over the past few years they have been a strong force in this market and even passed up a deal to buy giant 3com just a few years ago.
The task of entering into and succeeding in the U.S. market seems daunting. One of the problems plaguing the company are numerous concerns raised by a U.S. security panel. These growing issues were a reason they decided not to acquire 3com in 2007, according to the article. In addition to these distractions, the landscape is already extremely crowded. With devices such as the iPhone, Blackberry, and Droid it makes a newcomer extremely unlikely to succeed and play a major role.
Despite all of this however, there is potential to alter the overall path of the industry. On the surface the device dubbed "The Ideos" may not seem anything special. It will tout Google's latest Android operating system much like other phones, and hardware wise will also mirror several already popular devices. The one spot where it shines is its price point. Rumors have it set to be priced as low as $50 which is a quarter of what an iPhone 4 would cost. This, teamed with the value orientated customers T-Mobile already attracts may lead to the device being successful or at least have some type of influence on competitors price points. Although the deal isn't set in stone, the next month should be very interesting as T-Mobile hopes the release of the device will be a success for everyone involved.
http://online.wsj.com/article/SB10001424052748704855104575469820885876674.html?KEYWORDS=tmobile
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