On the Call: Cisco CEO John Chambers

0
16

NEW YORK (AP) ? Cisco Systems Inc. has many competitors, including Hewlett-Packard Co. and Juniper Networks Inc. But on a conference call with analysts Wednesday, CEO John Chambers singled out Huawei of China as the toughest future threat. The Chinese company is aggressively expanding beyond its home base.

QUESTION: Can you talk about the competitive situation?

RESPONSE: We have to take on Huawei in China. You can’t let them make their profits in China and then do a breakeven around the rest of the world and we are very competitive in China and Owen Chang is doing an amazing job there in terms of taking on some competitors in their home turf but also partnering with other players and don’t be surprised if you see us partnering with more Chinese players in a win-win type of fashion. … Huawei will always compete on price. They’re going to be tough on us in the long run. They’re probably the one that will be our toughest competitor four to five years out if we make our transition right.