ZTE farewell operator dependent

Tencent technology Guo Xiaofeng reported on June 9

ZTE will continue to focus on the three markets of operators, government and enterprises, and consumer businesses. Among them, the carrier market adopts a strategy of deep management, the government and enterprises' network markets adopt a focus on business strategy, and the consumer market adopts a fusion innovation strategy. "At At today's ZTE 2014 Global Analyst Conference, Zhao Xianming, executive vice president, said today.

In a continuously changing environment in the global economy and telecommunications industry, after experiencing a poorly run period of development in 2012, ZTE decisively adjusted its strategy in 2013 and improved its operating conditions. According to ZTE's earnings last year and the first quarter of this year's earnings report, respectively, net profit of 1.358 billion yuan and 622 million, an increase of more than 200%.

At the conference, Zhao Xianming also released the MI-ICT strategy and disclosed that it will set up a dark blue laboratory as an innovative engine and incubator in the future.

For last year's performance reversal, Zhao Xianming attributed the reason to the continuous investment in new technology research and development. According to him, ZTE annually produces 10% of its revenue for research and development. Last year, the global R & D investment amounted to one billion U.S. dollars and the investment will continue to be maintained in the future.

From a specific business perspective, the carrier market is still the major revenue component of ZTE, accounting for 54% of the total. The revenue contributed by the Chinese market accounts for 74% of total revenue. Other markets such as Europe and Oceania account for about 26% Market growth is still great room.

"The next step in the carrier market is to operate in depth, especially in overseas markets," Zhao Xianming said. However, for the increasingly saturated European market, the demand for 4G is far less than that of the domestic market. Coupled with the difficulty of the U.S. market in the short term, the future growth of the carrier market business has reached the ceiling.

In addition to the carrier business, the government, enterprise and consumer markets account for 46% of ZTE's revenue. Among them, the terminal's revenue accounted for 28%, and this market has been recognized as the industry's traditional telecommunications equipment manufacturers a new driver for future growth.

From the development of ZTE terminal in the past two years, smartphones shipped 35 million units in 2012 and shipped 42 million units in 2013. The development speed of terminals is much faster than that of previous operators. However, Problems are gradually exposed, especially in the supply chain and production capacity support is inadequate.

In response, ZTE, the CEO of ZTE who took office for nearly six months, took drastic reforms. The biggest change was to reduce the number of models and focus on fine products. In the first half of this year, the number of models dropped by nearly 50%.

Second, it is to increase supply chain construction and optimization. Recently, ZTE has held a global supply chain cooperation conference to optimize the allocation of resources to ensure the supply chain controllability, and then deal with the huge number of reservations on the 1st Star and Star ZTE opportunities and challenges. In product supply, in order to ensure the efficiency of product shipments and improve the yield of mobile phones, the demand for strong secret and the stars on the 1st of two phones, ZTE are all in their own production line production, to ensure full control.

Supplement to cooperate with the expansion in the channel. According to Zeng Xuezhong, in the first half of this year, ZTE terminals set up channel departments and e-commerce departments one after another, strengthening cooperation with social channels to enhance sales capabilities. "This year our smart terminal goal is 60 million." Zeng Xuezhong said.

Tencent technology from the current understanding of the data point of view, to achieve the annual goal of 60 million tasks, the pressure for the ZTE terminal is enormous. The current time has more than six months, sales of smart terminals is not optimistic.

With the development of technologies such as mobile internet, cloud computing, big data and internet of things, the future growth of government and enterprises will grow into a huge market of trillions of dollars, much larger than the traditional telecom equipment manufacturing business.

ZTE Pang Shengqing, senior vice president and general manager of ZTE Corporation, said before that ZTE's business goal is to achieve one-third of the company's total revenue and become one of the main pillars of ZTE's profit.