TechTarget

Cisco halves sales forecast as CEO John Chambers eyes Huawei market share

Following Cisco Systems' warning it is to halve its sales forecast as it struggles with reduced demand and increased competition, CEO John Chambers said he intends to battle with Chinese network provider Huawei.

This Article Covers

Networking

Network provider Cisco Systems has halved its sales forecast as it struggles with reduced demand and increased...

competition.

Cisco's annual revenues will grow up to 7% over the next three years, down from a previous target of up to 17%. But profits are expected to grow up to 9%, said the company.

Speaking at Cisco's annual analysts' day, CEO John Chambers said it intended to do battle with Chinese network provider Huawei, which he described as a very tough competitor, reported Reuters.

Chambers also said he wants Cisco to generate 40% of its long-term growth from emerging markets compared with its current 20%. But he said he was seeing positive signs from Cisco's existing customers.

Cisco has embarked on a number of shake-ups this year, including the loss of 9% of its workforce - around 6,500 jobs - and the axing of its Flip video camera business.

Chambers said Cisco would refocus on its core markets in routers and switching, collaboration, datacentre virtualisation and video, in an organisational restructure announced earlier this year

"Bottom line, we have lost some of the credibility that is foundational to Cisco's success - and we must earn it back," Chambers said.

CW+

Features

Enjoy the benefits of CW+ membership, learn more and join.

Read more

0 comments

Oldest 

Forgot Password?

No problem! Submit your e-mail address below. We'll send you an email containing your password.

Your password has been sent to:

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close