ZTE Corporation which deals in telecommunications equipment, network solutions and mobile devices has released its forecast for first-half profit as the company sustained strong momentum in its 4G infrastructure operations. As per the revised guidance published by the company, the net profit to the shareholders will range from RMB 1 billion and RMB 1.15 billion. This indicates an increase of between 223% and 271% as compared to last year.
The company was able to increase the profit by strengthening cost control and operational methods. The company was able to maintain the position of leading vendor for 4G infrastructure in China which also increased its market share in return. The company foretells that with the launch of LTE enabled smartphones the 4G services will also witness the growth of 40% by the end of 2014. The company also witnessed growth in the U.S market in the prepay handset segment.
Talking about the enterprise division, ZTE is moving at a very fast pace towards growth. The company’s smart city solution is installed in 108 cities of China. Along with this its information technology applications and solutions are used by customers Tencent, Bank of China, China FAW, PetroChina, and China Eastern Airlines to deliver improved operational agility and efficiency.
In the near future the company expects to benefit in the China, Japan and India market with the investments done in 4G. Apart from this it also aims to consolidate the telecommunication market in Europe and prepares to provide new opportunities for ZTE. In the Mobile Devices division, ZTE expects to benefit from the strong overseas operations.