ZTE has ambitious goals for its devices business

Nathan Burley/Ovum | September 29, 2009

ZTE handset and datacard shipments have been growing rapidly. With strength in China, leadership in TD-SCDMA and an operator-centric customization strategy, it aims to be a top-three handset provider by 2013.

ZTE says that its total mobile handset shipments in 2008 were 45 million (up from 31 million in 2007 and 16 million in 2006). The company claims to have shipped 27 million devices in 1H09, and is targeting 60 million for the full year. Although much of the growth is from China, ZTE has also achieved growth in other regions including Western Europe with operators such as Vodafone and TMN, where a significant proportion of devices are co-branded.

Such growth is impressive, especially given that we expect the devices market to decline 9.1% globally in 2009. ZTE is clearly gaining volume share and it plans to be a top-five handset provider by 2011, and a top-three provider by 2013.

ZTE believes it has a number of sustainable competitive advantages that will enable it to achieve these ambitious goals.

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