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ZTE - Taking the Right First Steps

Ovum, July 2008, Pages: 8

ZTE is well positioned in the low-end handset market, particularly in handset customisation. It is present in the largest mobile markets; China and India, as well as emerging markets such as Africa, Latin America and Eastern Europe. Obtaining volumes is not a problem for the Chinese handset vendor, but significantly improving the bottom line is a more difficult task. Raymond Yu examines ZTE’s handset business unit, looking at its current performance, strategy and future goals.

Table of contents

Executive summary

In a nutshell
Key messages
Ovum view

ZTE: products and performance

Overview
Products and services
Strong performance in 2007
Handsets are growing in importance
2008 and onwards

ZTE’s handset strategy

Two pronged attack is in-line with ZTE’s qualities
Strong presence in the largest mobile markets
Ability and willingness to go the extra mile
Demand for inexpensive devices in mature markets
Strengthening its brand and reputation is the next step

Table of figures

Figure 1 ZTE’s total sales revenues by business segment
Figure 2 ZTE’s wireless strategy
Figure 3 ZTE’s handset development process for handset customisation

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