Chinese smartphone maker ZTE is facing criticism after pulling a publicity stunt during Chinese President Xi Jinping’s first official state visit to the United States in the previous week.
At a welcome banquet in Seattle for Xi and the Chinese delegation on Sept. 22, a ZTE Axon smartphone was photographed on top of an invitation card printed with the words "Xi Jinping," according to several news reports. It was later revealed that the phone was placed there by Wang Lijiang, a sales manager with ZTE North America.
The photograph, which quickly circulated online, prompted wipespread backlash from Chinese netizens and the media.
Once consumers discover that Xi does not actually own a ZTE phone, it can be very difficult to rebuild their trust, the Chinese technology website Sina said in a report.
This is not the first time ZTE has gained publicity from the Chinese president. In March the previous year, Xi's first lady Peng Liyuan was photographed using a ZTE Nubia Z5 in Berlin during Xi's state visit to Germany.
ZTE has had a sluggish performance in recent years, following several leadership changes, poor sales in the domestic market, and increased marginalization in the industry against its competitors Xiaomi and Huawei.
ZTE smartphones simply followed the overall trend without presenting some outstanding flagship models to distinguish itself from other smartphone manufacturers, the Want China Times said in a report on Thursday.
The company has fallen into pricing wars with competitors in the mainstream market, resulting in less profits as well as restricted R&D and promotional spending.
Over time, the company is losing its long-term competitiveness, the report said.