• Several smartphone makers are beefing up their performance, including ZTE, to secure a share in the devices' Chinese market.

Several smartphone makers are beefing up their performance, including ZTE, to secure a share in the devices' Chinese market. (Photo : www.wantchinatimes.com)

As ZTE Corp. faces "unprecedented" handset sales pressure in China as other firms beef up for tougher competition, it has set out plan on how to increase the sales performance of its smartphones.<

The firm, which earlier aimed to be China's third largest player in the world's biggest smartphone market, has worried analysts that this goal may be too ambitious to achieve.

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ZTE's executive vice president and mobile devices division head Zeng Xuezhong said that in the coming months, the Shenzhen-based company will be releasing "compelling," "cool," and "trusted" next-generation flagship handset.

The ZTE official is confident that the new device will win the firm buyers from rivals Huawei Technologies Co. Ltd. and Xiaomi Corp.

"The revenue growth is not quick enough nowadays and the pressure is unprecedented," Zeng remarked, adding that the firm is now "moving to the mid- and high-end sectors for larger margin to address the challenges."

As part of its efforts, ZTE is also doubling its marketing expenditures for the next three years to raise brand awareness. By 2018, it aims to reach its number of brick-and-mortar retail stores and partners' distribution channels to 50,000.

Meanwhile, Huawei and Xiaomi are also stepping up in the game, as they posted impressive performance in the recent period in the 2,000-3,000 yuan segment. The two have also been working on eye-catching designs.

While Xiaomi's smartphone shipment reached 35 million for the first half of 2015, ZTE has only shipped 26 million units.

Amid the "unprecedented" growth pressure, ZTE maintains its target of 60 million units for shipment for this year. In 2014, it has shipped a total of 48 million devices.

In order for ZTE to reach the top three list of smartphone makers in the Chinese market (it is currently listed in the top five), it has to battle against tech giants Apple Inc., Samsung Electronics Co. Ltd., Lenovo Group Ltd., Xiaomi, and other smaller players like Coolpad and OPPO.

Experts agree that the firm should work on its distribution channels, regional sales arrangement product line and overseas efforts to possibly reach a spot in the market's top three.