ZTE is making money and meeting profit estimates in China, just like they planned. Their reported Q1 profits matched their estimates going into the year, and their net profit rose a whopping 204 percent, also beating estimates. From January to March, ZTE's had profits of 622.2 million yuan, or $100.1 million. It may not seem like a lot compared to powerhouses like Samsung, but ZTE is one of a handful of companies that we need to watch over the next few years.
Total operating revenue for the quarter rose 5.5 percent from the previous year and ended up at 19.05 billion yuan, or $3.06 billion. ZTE shares rose on the news to close at 1.6 percent higher in Hong Kong, which beat the 0.3 percent rise in the benchmark Hang Seng Index. Business is looking for ZTE.
ZTE Corporation is a multinational telecomm company. They don't just do cell phones; they're involved in wireless exchange, optical transmission, wireless access, and telecommunications hardware and software. As of 2012, they were the world's fourth largest cell phone manufacturer. They are also the fifth largest telecomm equipment manufacturer. They even handle some video on demand and streaming media products. They are actually hold the fifth spot in the US smartphone market Even though we aren't very familiar with them here in the US, ZTE is a big company that is pushing to expand even further.
ZTE isn't the only company that is making money and making moves to expand globally. Other companies like Xiaomi and Huawei are recruiting high profile execs and engineers to guide them into the future. They're not just focusing on the US market, though. Two of the fastest growing markets in the world right now are China and India. All of these phone manufacturers, and even Google itself, are focused on building into these growing markets. While the US market is saturated with smartphone owners, countries like China and India represent markets where users still predominantly use dumb phones. Many people don't have reliable internet access but that's changing as OEMs provide inexpensive smartphones to them.