ZTE revenue up 8%, profit surges 94% in 2014 thanks to 4G network, smartphones

Telecom network vendor ZTE today said it achieved 8.3 percent increase in revenue to RMB 81.47 billion, while profit increased 94 percent to RMB 2.63 billion or $423.5 million in 2014.

RMB 40.89 billion revenue came from international operations, accounting for 50.2 percent of ZTE revenue. Operations in China contributed revenue of RMB 40.58 billion.

Higher sales of 4G network equipment and smartphones lifted the company’s profit margins. ZTE won several key TD-LTE contracts from China Mobile. Last year, ZTE, which competes with Huawei, Nokia Networks, Alcatel-Lucent and Ericsson, introduced 4G solutions including Cloud Radio, QCell, UBR and Magic Radio.

ZTE revenue in 2014

In cloud computing and IT products, ZTE achieved increased penetration of the financial services market, helped by the company’s large data processing platforms and distributed database technologies. ZTE also posted growth in its data center products business.

In ZTE’s Mobile Devices division, the company posted growth in sales of 4G smartphones and 3G mobile phones internationally. ZTE streamlined its product lines in smartphones, and benefited from improved branding, channel distribution and services.

In wireline and optical communications products, ZTE achieved increased market share in the optical transport networks market, maintained leadership in PTN, EPON products, and posted growth in access terminals and GPON products.

ZTE will pursue opportunities in RCS, cloud services, smart city to help enterprise customers navigate the Industry 4.0 or Industrial Internet transformation.

Baburajan K