Telecom Lead Asia: Chinese telecom gear maker ZTE has
posted operating revenue of $2.96 billion for Q1 2012, up 29.46 percent over
the same period last year.
The company posted net profit of $22.99 million, an increase
of 23.85 percent over the same period last year.
ZTE’s revenue from its carrier networks increased by 13.65
percent in Q1 2012, compared to the same period the previous year.
ZTE’s terminal product revenues increased 27.33 percent
compared to the same period last year, driven primarily by sales of 3G
handsets, due to large increase in sales of services and fixed terminals during
the quarter.
During Q1 2012, investments made by mobile carriers
primarily focused on construction and optimization of mobile broadband and
wireline broadband networks, which was a result of more in-depth 3G network
deployments and the commercial deployments of 4G.
In China, the company focused on further penetration of the
broadband market, increasing transmission speeds and deploying mobile Internet.
Globally, the company reported relatively fast growth in
operating revenue from international markets, which ZTE termed a result of
sustained growth in the global telecommunications market and product
cooperation efforts with mainstream global carriers.
Furthermore, ZTE will look to expand its sales of these products in
the United States, Japan and Europe. The company will also seek to maintain the
growth of its other products such as telecommunications services and government
enterprise solutions.
In the future, ZTE will continue to focus on opportunities
in capacity expansion and upgrades of global wireless networks, national
broadband strategies and developments in the smart terminal and ICT sector.
The company said that it will build on its ongoing
innovation initiatives with the goal of transforming into a solutions-based
business.
ZTE will continue to emphasize its competitive mid-to-high
end smartphones, including the U970 model and upgraded models such as the
U880D/U880E.
ZTE to improve handset profit margins this year
ZTE is expecting to improve handset profit margins
this year. ZTE said global sales of its smartphones to more than double from 15
million sold in 2011.
