ALE, operating under the Alcatel-Lucent Enterprise brand, has announced that the company will not raise prices on enterprise networking products and services before 2019, regardless of the significant cost implications brought on by the ongoing trade war between the US and China, the company said.
After an unsuccessful plea by some of the world´s largest IT hardware vendors to remove certain categories of products from being included in this latest round of tariffs, the US imposed a new import tax on a long list of goods made in China, including some networking components built into ALE products. If there is no acceptable resolution to the ongoing trade dispute with China, the administration has indicated plans to increase the current 10 percent tariff to 25 percent in January 2019.
To offset the inevitable earnings impact, many vendors have chosen to pass the cost through to channel partners and customers by immediately increasing prices. ALE will absorb the current 10 percent increase and give partners the opportunity to place orders before a potential need to adjust pricing in the new year.
ALE has stated that any price increase in 2019 will be communicated at least three months in advance, to allow partners and customers time to prepare.
ALE delivers networking and communications that work for people, processes and customers, the cloud or in combination.