thor2

A Bearish Call on China Techfaith Wireless (CNTF)

I was a bit surprised by timezero's swift 180 degree attitude change. Maybe the blatant stock price manipulation disappointed him/her. To that extent I can understand.

But to upgrade this to nationalism issue is a bit emotional. Business wise, CNTF story is not over yet. It is still growing in a relatively rapid pace.

1） During conf call, CNTF exec confirmed that their targeted design models are mid to high end. Meanwhile, after restructuring NEC will focus on mid to high end phones in China market. Therefore it is premature to conclude that CNTF will lose most contracts from NEC.

2) Assume a 100% withdrawal of Japanese companies from China cell phone market. If this is the case, Chinese cell phone players will recover. Then, being the No 1 design house in China, CNTF will get more contracts from them.

3) 3G is finally coming. CNTF should have an edge in competing with other local design houses over 3G technology.

4) It is not fair to relate all Japanese company's failure to CNTF. I don't think CNTF is that powerful, yet.

5) Huawei's IPO is nothing to do with CNTF. Huawei's CEO Mr Ren is far from being Warren Buffet, let alone a national hero.