ZTE first-quarter profit jumps 27.8% as carrier networks and Smartphone sales rise
SHENZHEN -- ZTE Corporation, a major international provider of telecommunications, enterprise and consumer technology solutions for the Mobile Internet, has posted a 27.8% rise in first-quarter profit as the company increased sales of carrier network solutions and smartphones.
Net profit attributable to ordinary shareholders jumped to RMB 1.21 billion in the first three months, according to ZTE's quarterly results announcement. First-quarter revenue increased 17.8% to RMB 25.75 billion.
ZTE said Innovation was powering the growth in its business. Research and development in the first three months accounted for almost 13% of quarterly revenue.
ZTE said it was strengthening its position as a global leader in 5G research, as the company deepens its collaboration with the world's largest carriers.
It was leading the market in the development of Narrowband-IoT (NB-IoT) services, and was the first vendor to release a pre-commercial NB-IoT based smart-parking system, helped by proprietary innovations in networks, chipsets and devices. ZTE's self-developed chipsets posted 70% year-on-year growth in shipments in the first quarter.
ZTE manufactures the AXON and Blade lines of smartphones. In February, it introduced an upgraded version of AXON 7, the company's first device to support Google Daydream, to deliver virtual reality experiences to consumers. At the Consumer Electronics Show in Las Vegas in January, ZTE unveiled the Blade V8, a new smartphone that allows users to take Bokeh photos and supports 3D photography.
ZTE described itself as one of the top device partners of China Mobile, and said it is leading the market in the development of encrypted smartphones for more robust information security In Government and Corporate Business, It was also consolidating its position as a global leaders in Smart City technologies, with new projects in major Chinese cities, as well as in western European markets, including Germany and France.
ZTE said it would proactively pursue new growth opportunities, with the company continuing to strengthen its ongoing commitment to R&D and rigorous operation management. www.zte.com.cn (ATI).