ZTE plans on adding value rather than quantity and intends to focus on fewer core products. (Photo : Oculus)
ZTE Corporation released a statement saying that its profits likely reached a 94-percent increase in Dec. 2014 because of its high-speed 4G network division and smartphone business.
The Chinese telecom equipment maker's net profit reached 2.64 billion yuan ($424.5 million) that rose 8 percent to 81.2 billion yuan, preliminary results showed.
Both figures were slightly lower than the 2.82 billion yuan profit and 84.12 billion yuan revenue estimated by 13 analysts in a Thomson Reuters SmartEstimate poll.
The profit growth was due to sales of time-division duplex long-term evolution (TD-LTE) and frequency-division duplex LTE (FDD-LTE) equipment in China, and an increase in its handsets in international markets, as well as improved contracts and expenses control, ZTE's released statement said.
The company pointed out in a Dec. 2013 statement that it targets to export 60 million smartphones in 2015 and will concentrate on two or three core products.
Zheng Xuezhong, CEO of ZTE mobile devices, said that the company had a large number of products in the market, but some did not help boost their brand value.
He added: "We have introduced a strategy to increase the value, instead of the volume, of our products by focusing on developing core technology in major devices."
However, it also reported a slowdown in handset sales in China and saw the rise of Xiaomi Inc., also a Chinese technology company.
Xiaomi is the world's third-largest smartphone maker since last year.
Nevertheless, the adoption of the fourth-generation mobile networks in China, the world's biggest mobile phone market, is a boon for ZTE and rival equipment vendor Huawei Technologies Co., with each winning over 25 percent of the $3.2 billion 4G tender of no.1 carrier, China Mobile Ltd., the Global Times reported.
