26 October 2021, Shenzhen, China - ZTE Corporation (0763.HK / 000063.SZ), a major international provider of telecommunications, enterprise and consumer technology solutions for the mobile internet, today announced that Ni Fei, Senior Vice President of ZTE and President of ZTE Mobile Devices, has delivered a keynote speech on "Scale New Height with InnovAction" at the ZTE Analyst Conference 2021, sharing the future development targets and strategic measures of ZTE Mobile Devices.
He said: ZTE Mobile Devices will go “All in 5G” in China market, further strengthen the core position of mobile phones in mobile Internet, and continue to build a full-scenario 5G terminal ecosystem. Meanwhile, ZTE will consolidate the positioning of "InnovActor", drive the commercialization of cutting-edge technologies with "innovation + action", integrate brands, channels and markets to make concerted efforts, and comprehensively support the terminal business to scale a new height.
With profound technology accumulation and innovation ability, significant improvement was achieved in the business of ZTE Mobile Devices in the first half of 2021. Among them, the growth rate of the domestic revenue was 150%, and the growth rate of the international market revenue was 50%. The SoM of 5G CPE ranked first in the world. Over 100 million units of ZTE terminal devices will be shipped in the whole year, of which over 50% will adopt in-house designed chipsets. Under ZTE's overall target of entering the world's top 500 within two to three years, the new target of annual growth rate of more than 200% for the domestic market and more than 50% for the overseas market is developed for the business of Mobile Devices.
Go "All in 5G” in China Market, and continue to build a full-scenario intelligent experience
Today, the consumer electronics industry is in the new age of accelerated evolution, continuous fission and integrated innovation. The 5G trend is sweeping the world, the consumption scenario continues to expand, and the market is gradually recovering in the post-epidemic era. Facing new opportunities for the market development of 5G smartphones and mobile Internet products, ZTE Mobile Devices will go all in 5G in the future, continue to consolidate the "big terminal" product strategy, and build a new future for 5G with full-scenario intelligent experience.
In terms of ecosystem building, ZTE Mobile Devices will continue to improve the "1+2+N" smart product system, promote the transformation and evolution of "hardware-software-service-ecology", integrate smartphones, personal data and family data, and provide the all-round 5G smart experience surrounding the four scenarios, that is, sports & health, business travels, home & education, and audio-visual entertainment. Based on the overall ecological architecture, ZTE Mobile Devices will further strengthen the core role of smartphone in the mobile Internet, continue to improve product capabilities in the four key areas, that is, design, photography, telecommunications and OS interaction, and create multi-screen interaction and connection, so as to achieve IoT centered on smartphones.
In the field of mobile Internet products, ZTE Mobile Devices will further consolidate its leading position in the global market. At present, ZTE's mobile Internet products have covered personal and family data terminals, industrial interconnection terminals, and IoV terminals. The 5G routers rank first in the global operator market. In terms of SoM, ZTE Mobile Devices will strive to continuously occupy the first place in the high-end market of MBB products and in terms of technical capacities, it will maintain 5G patents and product performance at a leading position. At the same time, it will comprehensively expand IoT products to vehicles, industry, etc., becoming No.1 in the global mobile Internet business.
Consolidate the "InnovAction", and bring the in-house designed chipsets to a new level
Under the "large terminal" product strategy, ZTE Mobile Devices will further strengthen its "InnovAction" in the technical field, continue to promote cutting-edge technological innovation, and strengthen its "action force" for commercial landing in the future. In terms of the underlying core technology, ZTE Mobile Devices will incorporate in-house designed chipsets into its vigorous development planning, and make efforts to improve its independent capabilities and innovation level. At present, ZTE has applied for 4,400 patents for chipsets and owned about 1,950 authorized patents. Among them, the in-house designed chipsets of terminals have covered personal communications, homes, IoV, industrial monitoring and other fields. In the future, ZTE Mobile Devices plans to continue to improve its capability of R&D platform, and further expand the proportion of application of in-house designed chipsets.
In the field of smartphones, ZTE Mobile Devices, as the pioneer of under-display camera and fusion computing photography, will continue to promote the update and iteration of relevant technologies, leading a brand new track in the smartphone industry. Meanwhile, relying on the "1+2+N" terminal products with complete ecosystem, it will further create scenario-based AI smart communications, and create intelligent and professional terminal network solutions in response to the requirements of high reliability, high security, low latency and high bandwidth in different scenarios in popular application fields such as mobile office, e-sports and live streaming.
In the continuously rising IOV market, ZTE Mobile Devices will explore the business model and scenario innovation to comprehensively promote the development of C-V2X industry and the construction of smart transportation. Using 5G and C-V2X to form an all-round coordination system of person, vehicle, infrastructure, network and cloud, we can create communication connections with low latency and high reliability, and realize a more efficient, smarter and safer smart transportation network. At present, ZTE Mobile Devices has achieved in-depth strategic cooperation with a number of first-class automotive enterprises, and the cumulative shipment volume of products has reached one million level.
Fully coordinate brands and channels, achieving continuous growth of global business
With the product capability and technological innovation as a solid foundation, ZTE Mobile Devices will also fully coordinate brand, channel and market strategies in the future, so as to maintain rapid development in China and steady growth in the world. In terms of brand layout, ZTE Mobile Devices will further integrate the three major brands, specifically, ZTE, Nubia and Red Magic, and expand domestic market segments. Through effective coordination of brands, a brand new image of ZTE smartphones with recognizable technologies, high quality and youthfulness has been created. Among them, Axon focuses on the business people, advocating the achievement of social entrepreneurial power while Nubia is a fashion brand for young consumers to create individuality and Red Magic focuses on the field of e-sports, strengthening the brand labels of hardcore, passion and coolness, so as to cover the differentiated population.
In terms of channel construction, ZTE Mobile Devices will focus on expanding refined operation, and use digital systems to promote comprehensive empowerment of terminal channels. Among them, the 5G experience store will focus on creating an immersive experience as an important position and bridge for interaction with consumers and fans. Meanwhile, the distribution channels will be expanded, and the construction of the offline retail system will be improved relying on the channel co-construction model. ZTE Mobile Devices plans to build 5,000 offline sales channels in 2021, and to date, 4,000 have been built so far, and the scale of the retail system begins to take shape. In addition, ZTE Mobile Devices will exert the consistent advantages of ZTE in the government and corporate customers, continue to develop political and commercial channels, and build a multi-level sales system with full coverage.
In overseas markets, ZTE Mobile Devices will implement country-specific policies, adopt different strategies based on the differences in market environment and 5G development in various countries, and focus on major countries to improve the capabilities in intensive operation and sustainable development. At present, the sales of ZTE Mobile Devices cover more than 160 countries and regions, and there are more than 100 million active smartphone users worldwide. ZTE Mobile Devices maintains close cooperation with more than 3,000 channel partners in the world, and has established strategic cooperation relationships with 50 top operators. In the field of E-commerce, ZTE Mobile Devices will continue to integrate its own E-commerce and third-party E-commerce platforms, so as to improve market coverage and service capabilities.
As a part of the end-to-end complete communication solution, terminal business is one of the directions supporting the business growth of ZTE in the future. Faced with new opportunities and challenges, ZTE Mobile Devices, guided by the brand new targets, will go all in 5G with the help of 5G development, spare no effort for "InnovAction". It is committed to making dreams come true with technologies, and continue to make efforts in coordination with brands, products and channels, expecting to achieve an important technological force for the development of the smart terminal industry.