The demand for smartphones in China continues to decrease, to solve that, ZTE will invest in the R&D of its products and self-developed chips. The goal of ZTE in 2022 is a 200% increase in total revenue in China and 50% increase overseas.
Ni Fei, Senior Vice President of ZTE and President of ZTE Terminal Business Unit, said at the Axon 40 Ultra product launch on May 9th that the communication terminal shipments of ZTE in 2021 were over 100 million, 50% of which were equipped with self-developed chips, tech news portal Yicai.com reported.
ZTE terminals will continue to increase investment in core technologies such as chips, algorithms, operating systems, and network architecture, relying on the comprehensive communication capabilities of the cloud, network, terminal, and core, Ni added to a journalist of Yicai.com before the launch.
According to Counterpoint's latest monthly report on mobile phone sales, smartphone sales in China fell by 14% year on year in the first quarter of 2022 to a total of 74.2 million units.
The mobile phone transaction volume in this quarter has been as low as that in the first quarter of 2020 when the market was affected by a severe epidemic. People with knowledge of the matter expect smartphone demand in China to continue to decline.
“As long as you stop innovating, you will soon be eliminated from this industry”, Ni Fei said. ZTE still insists on focusing on the display and imaging of its products this year, he added.
According to the plan announced by ZTE, ZTE's terminal shipment target is expected to exceed 150 million units in 2022, up 50% year on year, of which mobile phone business shipments in the same year are expected to increase by 50% over the previous year.
ZTE will promote the construction of domestic offline channels, and it is planned to build over 10,000 sales positions in 2022, Ni claimed.