Huawei baulks at $60 price tag for students' tablets

Huawei baulks at $60 price tag for students' tablets

Huawei Technologies, the Chinese telecom equipment giant, has expressed concern over its government's proposal to supply 860,000 tablet computers for only US$60 a unit, saying that represents half the retail price.

Mr MacDonald shows Huawei’s MediaPad tablet. The seven-inch device will probably be similar to ones to be supplied to the Thai government under the One Tablet per Child scheme, although those versions will have lower specifications.

Both governments are negotiating the terms to supply the Thai administration's One Tablet per Child scheme.

Information and Communication Technology Minister Anudith Nakornthap noted the Thai government has not yet finalised a prospective supplier list. He also denied reports the tablets would be paid for through a barter swap of Thai rice.

Gp Capt Anudith said after deciding which Chinese company will supply the tablets, the ICT Ministry will handle the contract.

"The tablet supplier and specifications are expected to be finalised this month," he said after the first meeting of the new tablet policy committee.

Michael MacDonald, chief technology officer of Huawei Thailand, said the company wants to participate with the tablet project but the government's request of $60 a unit is too low.

Watchara Wetcharuwat, Huawei's product manager, said a final price and purchasing conditions will be negotiated between the two governments, with Huawei fulfilling its government's requirements.

Huawei has the capacity to produce between 5,000 and 10,000 tablets in 50 days. They have a durability of two years.

Huawei also aims to win at least half of the 3G base stations to be installed by private mobile operators and the state telecom enterprises after a 3G licensing auction is held this year, with the total 3G base station market valued at 100 billion baht.

Phongsit Charoen, Huawei's manager for 3G products, said the company has high hopes for the Thai 3G market this year. It vowed to supply base stations within two or three months after operators place orders.

Huawei has the capacity to produce 5,000 3G base stations per month.

Mr Phongsit acknowledged its low price strategy might not be to its advantage when competing with Western equipment makers. But shorter lead times and a variety of features and functions could attract orders.

He added current 3G equipment prices declined by 70% compared to the past seven years.

Huawei is conducting a roadshow on mobile broadband technology at Queen Sirikit National Convention Center, demonstrating core network systems, 3G and 4G base station sites and value-added services.

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