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ZTE To Open Smartphone Factory In Indonesia As First Move In Targeting Local Market

September 23, 2014 - Written By John Anon

ZTE is an interesting company. Unlike other Chinese OEMs, ZTE does not seem to have found it as difficult to make its mark outside of China with a growing footprint in both the US and European markets. Back in April ZTE announced their first quarter profits rose a massive 204% with their total operating revenue up 5.5% from the previous year. In spite of most Western consumers probably not knowing of ZTE they can claim some further impressive stats like being the World’s fourth largest cellphone manufacturer and also occupying the fifth position in the US smartphone market.

With that said, China is still the company’s primary market. Back in April ZTE launched the ZTE Grand S II LTE in a now typical and infamous flash-sale format and sold 50,000 units in 58 seconds highlighting the demand for ZTE devices. With a strong presence in China and good strides being made in both the US and Europe it now seems ZTE are turning their attention towards Indonesia as their next target market. Indonesia is a rising market in terms of smartphones with the number of devices being sold increasing rapidly year on year. In a recent interview with the Jakarta Post, ZTE mobile devices CEO (for Asia Pacific and Commonwealth of Independent States) Jacky Zhang stated Indonesia is their biggest potential market “In the Asia-Pacific region, Indonesia is definitely ranked number one in our strategic markets”. Further adding that he hopes Indonesia will become one of ZTE’s “top three markets” within the next three years.

It seems one way ZTE hope to increase their presence (and eventual market share) in Indonesia is to start investing within the country. As a result, Zhang announced they are opening a smartphone factory in Indonesia. The factory will be strategically located quite near Soekarno-Hatta International Airport which is a major airport hub for the country and the South East Asian area in general. According to Zhang, the project is currently waiting approval from the relative Indonesian regulators although he fully expects the factory to be operational by the end of this year. In the interview Zhang also made a point of noting the factory will not only be there to serve Indonesia but also the wider South East Asia region.