Insights on 2010 Market Performance

The global market and domestic market in China both have experienced a deterioration in 2010, with a declination of telecom investment on each market by 3% and 14% respectively, in contrast with 2009. However, even confronting tough times in the telecom markets, ZTE has made a remarkable achievement in 2010, with contract sales up to 100 billion RMB and growth rate of 26%. This enables ZTE to be the fastest growing vendor in the global telecom sector.

According to the survey by Frost & Sullivan, ZTE has the highest Compound Annual Growth Rate (CAGR) among the top 5 vendors (Ericsson, Nokia, Huawei, Alcatel-lucent) in the global market, with 28.01% CAGR from the year 2008 to 2010 and 37.48% among 2006-2010.

ZTE has achieved 29% growth of its contract sales in overseas markets, especially in European and North American market, which is creditable to its success in 2010. More and more tier 1 players such as France Telecom, América Móvil, MTN and Softbank embark on cooperation with ZTE, and appreciate its excellent delivery. ZTE’s terminal products, Blade, Racer, Light, were out of stock in the Europe market for the first time, which witnessed ZTE living up to its reputation.

Despite this, the 3G investment in China market was facing a slowdown compared with the peak time in 2009, falling from 160 billion RMB in 2009 to 122 billion RMB in 2010. However, tri-networks integration boosted the investment in fixed-network which hoisted ZTE to achieve 22% growth in the domestic market.

Stabilization in its market share of wireless products and ambition towards the 3G terminal market will consolidate ZTE’s market position and guarantee its steady and sustainable growth in the future.