Unveiling its smart terminal strategy at Beijing conference

26 April 2011, Shenzhen – ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment and network solutions, today announced it is to sell 12 million smart phones (including tablet) in 2011 as it unveiled its smart terminal strategy at a press conference held in Beijing today, further expanding its innovative line of smart devices to the masses. ZTE is targeting to enter the world’s manufacturer list at top three for tablet providers, top five for Android and No.1 for Chinese smart terminals in 2011.

Driven by the market and corporate development, ZTE has focused on smart terminals as one of its major brand strategies for the immediate future. ZTE terminal shipment volumes increased to 46.6% with 22 million terminals shipped in Q1 2011 and with sales revenue up 51.4%, compared with Q1 2010, on a year on year basis. According to the latest Gartner report, global shipment of smart phones will reach 470 million, in 2011.

At the press conference, Mr. He Shiyou, EVP of ZTE Corporation interpreted ZTE’s strategic transformation from the following three perspectives. In terms of technology, the company will make comprehensive efforts from system, terminal and application to service to fulfill mobility and interconnection. A large-sized cloud computing team and smart terminal R&D team will also be established. In terms of the market, ZTE will evolve from being product-driven to brand-driven, and attach greater importance to the high-end market and high-end products, taking a firm hold on the three major markets, namely the US, Europe, Latin America and China. In terms of product, the company will fulfill consumer-oriented product planning, introducing three series of star products under three categories- for personal, home and office use.

As part of its smart terminal strategy, ZTE has introduced new handset models and Tablet PCs covering the latest 3G technologies in different global markets. These devices can be customized to determine the users’ requirement with improved innovative features and network technology. ZTE has recently launched various smart devices including smart phones and tablet PCs, with new models such as ZTE Skate, ZTE Blade & ZTE Light plus; these latest models support various 3G/4G standards such as ZTE Light LTE, a 4G standard tablet PC.

ZTE’s top industry partners including Qualcomm, Google, Marvell, NXP and other various telecomm operators attended the event, demonstrating their long-term support for strengthening a smart terminal strategy with innovation & personalized smart terminal devices for the global market.