Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

The network-equipment manufacturer Alcatel-Lucent SA, which posted a profit last quarter for the first time in two years, forecast that it can win market share from its competitors without reducing prices.

Alcatel-Lucent SA made an announcement, saying it has made a research and development collaboration with Intel Corp. The company also revealed that it is looking for more partners. Michel Combes, who is the Chief Executive Officer of the company, has lowered costs, sold assets and raised capital and aimed at increasing research in order to produce new products faster and sign more contracts than Alcatels rivals.

Combes said in an interview at the Mobile World Congress yesterday, which was cited by Bloomberg: “Its not only about prices, its about giving clients the products they want. In this industry, having a head start is a bonus.” He also added: “For months you heard me talk only about finance, because we couldnt sell our clients anything if they had doubts about our survival – thats out of the way now. Were entirely focused on innovation.”

Mr. Combes has made a promise to reduce the companys costs by 1 billion euros by 2015 and sell assets estimated to another one billion euros.

The Chief Executive Officer of the company is expected not only to deliver results on those promises, but also do everything in his power in order to increase the companys sales amid fierce competition on the market.

As reported by Bloomberg, Alcatel-Lucent revealed today that the company will invest alongside chipmaker Intel on R&D in areas including data storage and security. Mr. Combes explained that the collaboration does not include Intel acquiring an Alcatel stake, but it involves “a few hundred million” euros of investment made from each ones of the partners.

Combes said: “Our industry has room for improvement on that front. We dont need to have the lowest prices – I want to regain market share without breaking the industry.”

The company has been facing the fierce rivalry of its most serious competitors, such as Ericsson AB, the networking unit of Nokia Oyj, as well as Huawei Technologies Co. And as Ericsson has been oriented towards high-end contracts in order to increase its profit margins, last quarter Nokia Solutions and Networks said it was ready to let go of some profitability in order to accelerate sales growth.

Alcatel-Lucent SA rose by 1.43% to 3.1920 euro in Paris by 12:33 GMT, raising its market value to 8.97 billion euros.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Forex Market: USD/ILS daily forecastForex Market: USD/ILS daily forecast Yesterday’s trade saw USD/ILS within the range of 3.4560-3.4752. The pair closed at 3.4648, losing 0.14% on a daily basis.At 7:42 GMT today USD/ILS was up 0.35% for the day to trade at 3.4770. The pair broke the first key daily resistance […]
  • Forex Market: USD/CAD daily trading outlookForex Market: USD/CAD daily trading outlook Yesterday’s trade saw USD/CAD within the range of 1.2895-1.3086. The pair closed at 1.2912, ticking down 0.01% on a daily basis. It has been the 56th drop in the past 118 trading days. The daily high has been the highest level since June 3rd, […]
  • Natural gas weekly recap, October 20 – October 24Natural gas weekly recap, October 20 – October 24 Natural gas capped a third consecutive weekly decline as mild weather across most of the US throughout October paved the way for additional above-average inventory builds that would further narrow a record deficit.Natural gas futures for […]
  • South Africa’s CPI inflation eases to four-year lowSouth Africa’s CPI inflation eases to four-year low Annual consumer price inflation in South Africa has eased to 2.8% in October from 3.8% in September, data by Statistics South Africa showed.It has been the lowest inflation rate in four years mostly as a result of a drop in fuel […]
  • Natural gas futures drop on cooler outlookNatural gas futures drop on cooler outlook Natural gas fell for a third day in early European trading on Friday as forecasts for cooler Canadian weather systems to infiltrate the north-eastern US next week offset a bullish inventory report by the EIA and short-term forecasts for very […]
  • Family Dollar share price down, encourages shareholders to vote for Dollar TreeFamily Dollar share price down, encourages shareholders to vote for Dollar Tree Discount retailer Family Dollar asked its shareholders on Monday to vote in favor of the $8.5 billion takeover offer from smaller rival Dollar Tree, despite the higher bid from Dollar General.In a letter to shareholders, Family dollar said […]