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.