ZTE believes that launching the new 5G technology will give them a chance to overtake Samsung and Apple in the smartphone market. They want to achieve that thanks to the production of devices that will support new technologies. This strategy makes sense because ZTE is engaged in smartphone manufacturing, 5G research and testing of the first networks working on this technology. Will the launch of the 5G NR (New Radio) actually shake up the smartphone market?
This is an interesting question. It may seem that focusing on user devices and 5G base stations in one company will cause this kind of revolution. Also, ZTE cooperates with several operators who want to in launch the 5G technology by 2020. On the other hand, operators, apart from the service itself, also sell smartphones. It is not difficult to imagine a scenario in which ZTE supplies a large operator with all the necessary elements of the new 5G network: smartphones, base stations and backhaul network components. Of course, the origin of these devices from one supplier guarantees 100% compatibility.
The president of ZTE, Lixin Cheng, is counting on such a turn of events.
Plans are ambitious. A month ago in an interview with CBC Lixin Cheng pointed out that his company is currently focusing on several major markets: China, North America (mainly the United States), Europe and Asia Pacific. He claims that ZTE will be the largest smartphone provider in the world and this will result from market transformation from 4G to 5G. These activities require a lot of investment in new technologies and innovations, which is the strength of ZTE. Of course, Samsung and Apple also invest a lot in new technologies, and eventually they maintain it. The giant from Cupertino exclusively focuses on consumer electronics. However, Samsung is also trying its best to be the provider of telecommunications solutions for operators. Currently, ZTE smartphones are fourth in sales in the United States. In the first quarter of this year, the Chinese recorded a 27% increase in profits. All this looks very promising. Let’s not forget that ZTE demonstrated the first 1Gbps smartphone, the Gigabit Phone.