Handset Country Share

ZTE’s Global Execution Zipping Past its China Performance

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Report Summary:

If ZTE is to meet its goal to become the world’s third largest manufacture of mobile handsets within the next three years, it cannot rely on its strategies that got it where it currently sits. Strength in its domestic Chinese market and success with low-cost devices has been its pillars for growth from obscurity, but the company’s trends over the past several quarters indicate it may never fully dominate the Chinese market and the low-end is not where industry-leading brands are built. Its share of the Chinese handset market has remained relatively flat over the past five quarters and its smartphone volume in China has slid over the past two quarters, dropping more than 2% of share from its Q4 2011 high of 10.5%. But positive trends return when examining its performance outside of China, proving that ZTE can make the tough decisions to achieve its greater goals, even if it means sacrifices at home.

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