ZTE to scale down product line for stronger focus

Chinese smartphone maker is looking to develop just two to three core devices, dropping products that have not been competitive in the market, and focus on voice-control capabilities.

Faced with increasing market competition, China's handset maker ZTE Mobile Devices is looking to scale down its portfolio and focus on new consumer experiences.

The ZTE mobile business unit will develop two to three core devices and drop products that have not proven to be competitive in the market, said Zeng Xuezhong, CEO of ZTE Mobile Devices, in a China Daily report. The mobile manufacturer plans to develop devices that focus on creating new consumer experiences, he said.

The Chinese company recently launched its latest LTE handset, Star II, which features voice-control capabilities and is supported by more than 1,000 patents, of which 158 are linked to voice control technology, Zeng said.

ZTE has been offering various mobile devices running on several platforms including Android and FireFox OS. The wide variety, however, has done little to lift its market brand.

"We had a large volume in the market, but it did not help increase our brand value," said Zeng, who pointed to Apple's flagship smartphone and noted that Chinese handset makers should focus on their core, competitive products in order to beef up their brand value.

"We have introduced a strategy to increase the value, instead of the volume, of our products by focusing on developing core technology in major devices, such as the Star II," he said, adding that voice-controlled devices will drive ZTE's share in the Chinese market.

The company is targeting to ship 60 million smartphones in 2015, he noted. "There will be more products equipped with high technology that will be launched next year, which will help boost our presence in the high-end mobile industry," he said.