Bloomberg News

ZTE Aims to Pass Rival Huawei in Smartphone Sales in China

January 17, 2012

(Updates with comment from ZTE in fourth paragraph.)

Jan. 17 (Bloomberg) -- ZTE Corp., China’s second-largest maker of phone equipment, aims to pass Huawei Technologies Co. as the No. 1 China-based seller of smartphones in the country as models including its Skate Android-based device lure users.

ZTE’s Skate is its fastest seller, with more than 2 million units shipped since its introduction last year, Lv Qianhao, head of handset strategy, told reporters in Hong Kong today. The company’s Blade phone is its top model with 8 million units shipped.

The company plans to double global sales of handsets that can be used to surf the web, watch videos and play games this year as it expands market share in Europe, North America, Brazil and Japan. Huawei and ZTE trailed Espoo, Finland-based Nokia Oyj and Samsung Electronics Co. of South Korea in smartphone shipments in China during the third quarter, estimates by researchers Gartner Inc. and IDC China show. Huawei is the largest smartphone maker based in China, the world’s biggest mobile phone market.

ZTE’s target is to be the top Chinese smartphone vendor in the China market this year, Lv said. He declined to comment on Huawei’s sales.

ZTE held 9 percent of China’s smartphone market in the third quarter, compared to 10 percent for Huawei, according to both IDC and researcher Analysys International. Gartner estimates ZTE’s share was 8.4 percent, two percentage points less than Huawei’s 10.4 percent.

Sales of ZTE handsets that can be used to surf the Web, watch videos and play games rose fivefold to more than 12 million units last year, Shenzhen-based ZTE said last week.

--Mark Lee, with assistance from Edmond Lococo in Beijing. Editors: Garry Smith, Dave McCombs

To contact Bloomberg News staff for this story: Mark Lee in Hong Kong at wlee37@bloomberg.net

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net


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