ZTE turns to handsets and cloud in bid to catch Huawei

The Chinese company is hoping a strong boost from handset sales and data services will help it catch up with its rival Huawei

Chinese telecoms equipment vendor ZTE has set its sights on narrowing the gap with market leader Huawei, looking to its terminal and cloud-computing businesses to drive a 20-percent growth in revenue in 2011.

Local news agency China Daily reported on Thursday that Huawei recently forecasted an increase of less than 10 percent in sales. This would be an increase from 185.2 billion yuan (£17.3bn) in 2010 to 199 billion yuan (£18.7bn) in 2011. Comparatively, ZTE's revenue for 2010 was about a third of Huawei's at 70.26 billion yuan (£6.6bn), it added.

Citing ZTE's executive vice president Xie Daxiong, the news agency said the number-two Chinese telecoms equipment manufacturer is expecting a strong boost from its terminal business, which includes handsets and data services. ZTE will be one of three new hardware partners that will adopt Microsoft's Windows Phone 7 OS for its smartphones following the recent unveiling of the Mango update.

For more on this ZDNet UK-selected story, see ZTE aims to cut Huawei lead on ZDNet Asia.

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