ZTE bolsters its leading positions in key markets and global active users reach 68 million

SHANGHAI - Monday, October 27th 2014 [ME NewsWire]

(BUSINESS WIRE)-- ZTE mobile device reported strong results in Q3 2014 with revenue up by 40 percent year-on-year. The sales volume of smart devices accounting for 77 percent of sales overall, compared with 68 percent in Q3 2013. ZTE’s 4G expansion also marked a new milestone as 4G terminals accounted for 38 percent of terminal products, a 16 percent increase since the same period last year.

In the first three quarters of 2014, shipments of ZTE developed chips (such as the ZTE 7505/7510 chips) exceeded two million units. ZTE smartphone ASP (average selling price) saw an 8 percent year-on-year increase compared with Q3 2014 and global active users reached a total of 68 million. The story behind these results is ZTE’s focus on key global markets, as well as its on-going strategy implementation and a renewed approach to marketing.

Leading positions in key markets globally

As one of the most internationalized Chinese mobile phone manufacturers, ZTE has secured leading positions in key markets globally. Firstly, this has been led by the American and European markets, which represent key growth engines for ZTE. Most notably, it ranks fourth in the North American mobile and smartphone market and second in the pre-paid arena, as well as being a top-3 player among Canadian operators. Additionally, ZTE is the largest Chinese mobile phone manufacturer in the U.S., where the recently launched ZTE ZMAX phablet is proving highly popular. In Europe, ZTE has begun its transition from an ODM (original design manufacturer) business model to an OEM (original equipment manufacturer) model, which has led to an increase in the amount of terminal devices branded with the ZTE logo to 75% in the third quarter. According to a GfK report, the ZTE Star 1 (European Edition) ranked number one in terms of sales in Turkey.

Secondly, ZTE has expanded rapidly into developed markets worldwide. In the Asia-Pacific market, shipments of smartphones increased by 100% year-on-year and channel revenue also saw year-on-year growth of 130%. In Japan, ZTE has worked with Qualcomm to offer the fastest UFI products worldwide for four years consecutively. Finally, the highly anticipated ZTE STAR 1 was launched in Malaysia and will launch in other Asia Pacific countries and regions like Thailand, Hong Kong and Indonesia in the following months.

Last but not least, in Latin America, sales of ZTE mainstream smart terminals grew by 580% year-on-year; while in the Middle East and Africa, ZTE smart terminals growth has reached 400% in the same period.

Executing strategic changes

In a move to deliver increased value to customers, ZTE launched its ‘M-ICT strategy’ at the start of the third quarter, a move that emphasizes consumer experience, highly-efficient solutions for enterprises and a win-win ecosystem.

Other strategic initiatives include the initiation of a ‘Smart Voice Alliance’ by ZTE and partners, marking the start of a new era of voice controlled devices.

Lastly, ZTE began to build up its 4G range this year as part of a strategy to rapidly expand its 4G offering in the China market. This strategy has led to the launch of 4G devices such as the Grand S II, the Q series, the Red Bull series, the Star series and the Qing Yang series.

Renewed marketing approaches

In order to change its image as a traditional communications company, ZTE introduced three key guidelines: Cool, Green and Open, demonstrating continuous efforts to improve its business philosophy. In terms of e-commerce, a number of channels have allowed ZTE to further expand into overseas markets, such as continued cooperation with eBay and Amazon, as well as with Expansys in the Asia Pacific market. Furthermore, on the marketing front, ZTE’s three-year partnership with the NBA China as well as cooperation with NBA's Houston Rockets have boosted its brand image globally, reaching increased amounts of young consumers across markets worldwide.

About ZTE Mobile Devices

ZTE Mobile Devices is a division of ZTE Corporation, a global telecommunications equipment, networks and mobile devices company headquartered in Shenzhen, China. ZTE is a publicly traded company listed on the Hong Kong and Shenzhen stock exchanges.

ZTE is one of the global leaders in the mobile handset manufacturing industry in the world, offering a complete range of mobile devices, including mobile phones, tablets, mobile broadband modems and hotspots and family desktop integration terminals.

As a global leader, ZTE has partnerships with more than 320 major carriers and distributors in over 160 countries and regions around the globe. It also has strategic partnerships with 47 of the world’s top 50 carriers. Additionally, ZTE ranked No.1 in PCT patent applications in WIPO table in 2011 and 2012.

For more information, please visit: www.ztedevices.com

Contacts

ZTE Corporation

Eva Chen, +86 21 68897511

chen.zhengying@zte.com.cn

or

Waggener Edstrom Communications

Laura Liu, +86 10 59001242

laural@waggeneredstrom.com

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