ZTE's first-quarter profits climb 42 percent due to new strategy
The strategy focuses on providing carriers and enterprise customers with innovative solutions in cloud computing, big Data, Smart City and high-performance routers, so they can capitalize on opportunities in mobile broadband and Internet of Things.
The company’s net profit increased to $142 million (USD) in the first three months of 2015 on a revenue gain of more than 10 percent.
Operating revenue from telecommunications software systems, services and other products increased by 23.4 percent in the first quarter due to strong growth from video and network terminal products and services. Revenue from carriers’ networks increased nearly nine percent from 2014 as result of growth in wireless communication systems, wireline switch and access systems, routers and router switches. Operating revenue from handset terminals increased by seven percent, reflecting mainly higher sales of 4G handset terminals.
Looking ahead, the company plans to develop solutions for smarter networks to support carriers’ transformation into information-based operations. In its Enterprise Business, the company will seek to boost transformation of various industries towards “Industry 4.0,” or “Industrial Internet.” For consumers, the company will research smart-device and human-machine interaction technologies and develop integrated innovative home terminals.