China's ZTE smartphone maker predicts 4G-compatible smartphones will figure in 40 percent of the global smartphone shipments and $100 billion will be spent on the technology throughout 2014.
ZTE, the world's seventh largest smartphone maker, is working hard to push the fast-growing 4G network equipments and smartphones. After an incredible rebound from its first annual net loss in 2012, ZTE is expecting to take a bigger share in the smartphone and wearable tech space. During a press conference in Hong Kong Thursday, ZTE global head of mobile devices Zeng Xuezhong said that the company aimed at shipping 60 million smartphones in 2014, citing an ever-growing demand for 4G enabled smartphones. Add China's recent approval to deploy 4G across the country, ZTE is hopeful of capturing consumer interest with its high-end smartphones.
"We have released our high-end models in China, and we will also launch our 1000-yuan cell phone on a large scale in March. So we are very confident in our LTE phones," Reuters quoted Xuezhong as saying at the press conference.
ZTE's massive losses in 2012 recorded up to 2.84 billion Yuan ($457 million), but the company recovered impressively with a 147.79 per cent turnaround to 1.36 billion Yuan ($219 million) last year, the company said Wednesday. China's shift to high-speed fourth-generation telecom networks also played an important role in the recovery of the company's losses, a report from Wall Street Journal said.
"In 2013, operating revenue from terminal products decreased as a result of lower demand for feature phones and data cards. Smartphones and other smart terminal products now contribute a bigger percentage of total revenue, driven by the rapid development of the Mobile Internet," ZTE said in a press release, Wednesday. "The company will be committed to enhancing the competitiveness of its terminal products, adopting a more consumer-centric approach together with online-based business model. While maintaining and enhancing ZTE's competitive edge in hardware, the company will also be focused on developing software and services to provide improved user experience to consumers through innovation."
ZTE's world ranking in the smartphone making business is challenged by domestic competitors like Huawei and Lenovo, which currently rank at third and fifth place, respectively. The Chinese smartphone maker shipped 48.8 million smartphones last year, more than Lenovo's 45.5 million shipped units. ZTE says its smartphone business is strong in the U.S., Japan and Europe and with the help of its 4G LTE enabled smartphones, China will be added to that list this year.
"We expect ZTE's carrier network equipment and handset businesses to improve this year, thanks to the roll-out of 4G mobile services across China," Ricky Lai, a research analyst at Guotai Junan International told South China Morning Post.
As for the company's future, ZTE plans to run deep roots in the wearable device category. ZTE showed its first wearable BlueWatch at the Consumer Electronics Show in L.A. earlier this year. The smartwatch acts as a second screen to the phone to remotely control camera functions, shows call notifications and also allows social media access.
