Aug 9, 2011 1:19 PM,

ZTE, equipped with Android, LTE and Windows Phone, aims for U.S. market

By Michelle Maisto

Chinese phone-maker ZTE is hoping to making the United States its top sales market within the next five years. During Q2, its U.S. market share increased 300%.

What do Apple and Chinese phone maker ZTE have in common? During the second quarter, they were the only top-five vendors to enjoy global market share gains exceeding 30%, IDC reported in July. From there, they pretty much part ways, though ZTE, which currently has partnerships with 80-plus global carriers, is looking to Apple's home turf to keep its numbers climbing.

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Following second-quarter earnings results that included sales of 35 million handsets in the first half of the year, including a 400% increase in smartphone sales and a 300% increase in U.S. market growth, ZTE Executive Vice President He Shiyou told reporters that company want to make the United States its top market within the next five years.

Currently, the U.S. accounts for 10% of ZTE's handset business, while China forms 35% of the business and Europe has between 15 and 20%, according to the Times of India, which quoted He as saying, "Success in the United States is the proof required to say you have global success."

ZTE's growth is partly attributed to its shift from feature phones to Android-running smartphones. "ZTE has stepped up its smartphone game with the continued success of its Android-powered Blade and Racer smartphones while announcing Libra, Skate, and Amigo smartphones for release in the second half of this year," IDC reported in July. In the United States, however, options have been mostly limited to the Blade.

"ZTE is having great success in Asia, but has had difficulty breaking into the U.S. national carrier lineups with handsets," Current Analysis Analyst Avi Greengart told Connected Planet. "ZTE is getting some traction [with regional carriers] and clearly hopes that by introducing high-value Android smartphones it can get a bigger piece of the U.S. market."

Additional components of its U.S. growth plan, the Times of India added, will be smartphones running Microsoft's "Mango" platform, beginning early next year, and 4G LTE-enabled devices.

Greengart notes that competition in the space is fierce, and ZTE will be up against better-known brands such as LG, Samsung and even Huawei.

"ZTE will need more than low prices to stand out," Greengart added. "It needs shelf space and a consumer brand message."