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Apple. Samsung. HTC. These are smartphone brands that are well known – and indeed, well-loved – in the US. But ask any Joe on the road whether he knows about ZTE, and you’ll likely get a blank stare. It might have something to do with the stigma related to “Made in China” goods, but ZTE seems to be bucking the trend.
Consider this: the Chinese smartphone maker was ranked fourth – with 7.4 percent market share, claims ZTE – in the American mobile phone market earlier this year, beating other local Chinese manufacturers. The US is one of its most important markets, according to ZTE USA CEO Cheng Lixin. In fact, the smartphone manufacturer had increased handset shipments by 50 percent in the US in the first half of 2014, and it is reaping the benefits in terms of brand recognition.
While it had previously worked with no-contract carriers such as Boost, MetroPCS, and Cricket to gain market share, ZTE has now also added on strategic partnerships with all major carriers in the US. The ZMAX phablet, for instance, was sold through T-Mobile, and has become the top-selling device for the carrier.
Thanks to these efforts, there are now a massive 56 ZTE phones out there in the US market, though not all of them carry its brand – some are badged by various telcos instead. However, Cheng claims that “nearly every device ZTE now launches in the US carries the ZTE logo,” and they are aiming to make 100 percent of their devices ZTE-branded by 2015.
ZTE has also been boosting its marketing efforts in a bid to gain brand mileage. The latest in its plan is partnering with the New York Knicks basketball team – a clever move given that basketball is one of America’s favorite spectator sports. The smartphone sponsorship deal comes on the heels of similar partnerships inked with the Houston Rockets and the Golden State Warriors.
That isn’t to say that it will all be smooth-sailing for ZTE going into 2015. It could very well be caught up in a political crossfire, if it comes to that. And legal barriers continue to be a real possibility, something that both ZTE and fellow Chinese smartphone manufacturer Huawei have faced for the past couple of years.
Still, it has managed to “cooperate with all of the US agencies that have reviewed the company’s actions and business practices” over the past years, according to Cheng – crucial to its success locally.
“We’re committed to doing business in the US, and have been for the past 16 years […] We understand that there are responsibilities that come with doing business in the US, and are consistently working to comply with all obligations and act appropriately at all times,” he adds.
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