Chinese Android and telecommunications manufacturer ZTE seems to be on a roll this year, following the announcement of some its financial results from the first half of 2017. That's because the company reportedly managed to meet at least two of its own projections for H1 2017, in terms of both profits and revenues, which may be attributable to the rapid expansion of 4G LTE within ZTE's home region. However, the company appears to have done well in meeting its expectations across most of the board, proving that it is a real contender in the world communications market.
With regard to the numbers themselves, ZTE reported a 30 percent rise in net profit for the year's first half with profits landing at around $344 million. Overall revenue was up by 13 percent to just over $8.1 billion. Breaking that down further, ZTE says that the bulk of revenue - around 60 percent or $4.8 billion - was a result of growth in the telecom equipment sector of its business. On the other hand, revenue from its consumer-side smartphone business grew by 24 percent to just over $2.6 billion. That follows a trend the company has set in the U.S., in particular, where it accounted for 11.5 percent of devices sold within the country during the second quarter of 2017 - up from 10.1 percent from the first quarter of the year. However, it's not all great news for ZTE either, as the company was forced to save its stake in the U.S. market by paying a fine of close to $900 million to regulators.The handset maker saw a decline in revenue from government entities and on the enterprise side of its business of 18 percent - around $570 million. Meanwhile, ZTE also recently sold off a portion of its holdings in Nubia, effectively giving up its status as that company's parent-company along with its majority ownership. The company did hold on to 49.9 percent of that subsidiary, however, meaning it still plays a big role on that company's board.
Looking to the second half of the year, ZTE says that it will be taking advantage of new opportunities in both 4G and 5G. According to statements made by the company, it expects 4G traffic to enter its peak period and "pre-5G products" to have substantially more impact as a result. Meanwhile, ZTE says, 5G standardization, along with the associated technology and tests, will also "experience a breakthrough." Following up on that prediction, ZTE will continue through the rest of the year by investing more and internationally into technologies on both the mobile and 5G fronts, which matches well with earlier reports that the company would be doubling down on 5G.