Having built its network equipment business, the Chinese company trying to break through to higher margin products in new markets

smartphones Chinese revolution continues to spread beyond the shores of this county.

ZTE

of China is planning a strategic shift away from cheap phones and telecommunications equipment have become one of the fastest growing manufacturers in both sectors to make Smartphones and most profitable network equipment upscale - and aims to U.S. market growth.

ZTE expects to garner more sales out of procurement and the last of the fourth generation LTE (Long Term Evolution) of the art of major carriers.

The company, which began in the mid-1980s the sale of accordions and bulky phones, is also aggressively marketing their best-sellers at the battle of the smartphones from Apple 'likes and Samsung.

"Our strategy is to increase the unit selling price of our phones," said CEO Shi Lirong. "We are a turn to the production of more smartphones, by investing more in the innovation and marketing. This is a marathon and it is too early to declare the winners. We have our own strategy and take one step at a time. "

In the area of ??telecommunications equipment, ZTE is now the fifth largest in the world of total sales - behind Ericsson, Huawei Technologies, Nokia Siemens Networks and Alcatel Lucent. This sector is faced with two Chinese companies against two Scandinavian and French.

"I am confident that we will be able to reach the top three in the future," said Shi, who is an engineer by profession. "ZTE can be number five now, but our business is growing rapidly among our colleagues."

For mobile phones, ZTE, based in southern Shenzhen Boomtown, is now one of the top five vendors worldwide. China is already one of the best in the world to adopt five smartphones in comparison with its total mobile penetration, with 35% of urban consumers in China with one, according to a survey released earlier this month.

Shi, speaking in the context of the Mobile Asia Congress, said ZTE's strong links with major telecom carriers abroad have helped to protect the economic recession in Europe and the United States.

paris markets for ZTE's next generation of the ultra-fast 4G networks based mobile TD-LTE. ZTE won 28 commercial LTE contracts in the world, even with Softbank in Japan and Hutchison 3G Austria.

"We participated in all major LTE network in the world. We left the stone almost no chance, "said Shi, who has been with the company for 24 years.

The company expects to win this contract will increase the contribution of foreign source income to 60-70% at the end of 54% today.

The group expects its total revenues grow 30% this year, after rising 17% to 70.26bn yuan (£ 7 billion) last year, 60% came of business equipment and 26% of consumer devices such as mobile phones, he said.

In comparison, sales of Ericsson in 2010 amounted to approximately £ 19 billion and 17.5 billion pounds Huawei.

In 2010, the gross margin for telecommunications equipment ZTE rose 3.55 percentage points to 38.43%, while the margins of the devices of consumer products fell 5.88 points percentage 20.26%, almost half of the 40% apples.

The Chinese company had grabbed market share aggressively in recent years by selling cheap phones abroad in emerging markets like India and Africa.
ZTE was the fourth largest mobile phone manufacturer in the world in the third quarter, according to IDC, with 19.1 million phones shipped, against 12.1 million in the same period in 2010.

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