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ZTE to reorganize handset business, targets 50% of all revenue by 2016

  • ZTE (ZTCOF.PK +7.6%) plans to reorganize its handset business to better align it with the proliferation of smart terminals in China. A dedicated R&D team will be carved out. The Marketing and R&D groups will also be more closely linked.
  • Director of Handset Strategy Lv Qianhao stated that ZTE is targeting handset sales to reach 50% of company revenue in 3 years' time, up from 30% currently. According to Qianhao, ZTE met its targets in H1 and is on track to ship 45M units in 2013.
  • As part of the push, ZTE will open 1,000 brand stores in major retail locations around the country in 2013.
  • The new strategy comes as ZTE struggles in its core network infrastructure business, where profits have dwindled.
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