ZTE reportedly doubled its smartphone shipments in 2012 and also registered improved profitability for its terminals division.
The company posted a gross profit margin of 16.8 per cent for its terminals division last year. Also, the company’s distributors’ channel contributed 10 per cent of its terminal revenue.
Further, given its focus on high end markets, the company registered substantial smartphone sales in markets like the US as well as in emerging markets like India, Indonesia, Mexico, Argentina and Russia.
This has helped ZTE register an operating cash flow of RMB 1.87 billion in 2012.
Commenting on the results, He Shiyou, executive vice-president and head, mobile devices division, ZTE, said, “ZTE aspires to be the global leader in 4G, and shape the future of smart devices. For ZTE’s terminals business, 2012 was a year of transition that brought increased scale, profitability, and a higher profile. The shift to higher value will continue in 2013.”
Going forward, this year, the company is focusing on launching 4G products, transitioning from a B2B business model to a B2C and increase spending on branding and marketing.
Also, the company plans to collaborate with operators to focus on high-end products, 4G broadband devices, intelligent integrated services, and product innovation, as well as integrate its e-commerce platforms.
