(Yicai Global) March 22 -- China's multinational telecoms equipment and systems company ZTE Corp. has set up a separate mobile phone operation company named ZTE Intelligent Terminals Co. for the Chinese market, Tencent Technology reported today. The company aims to regain popularity in the world's largest smartphone market, where its sales saw a decline in recent years.
Unlike other ZTE affiliates, ZTE Intelligent, which will also be referred to as ZTE Terminal China, will work as an independent company to carry out more flexible operations, the report said. Bai Bo will serve as the company's president, while Cheng Lixin, senior vice president of ZTE Corp. and CEO of ZTE Mobile Devices, will act as chairman, the company officials said in a press conference in Beijing today.
China's mobile phone market will witness a reshuffle in 2018, said Bai, adding ZTE Terminals China will enjoy greater operational power than that of a regional unit. The company will increase its overall investment in the Chinese market, he added.
In terms of sales channel, ZTE Terminals China will adopt a model different from traditional modes of underwriting by professional channel companies and manufacturer-distributors integration.
It will operate a strategic cooperation model similar to the manufacturer-distributor integration mode, in which, the manufacturer and distributors are responsible for the production, brand, market planning and the strategic investment, while the channel makes full use of business to customer operations to achieve sales volumes.
"Last year, the company achieved the operational target of its mobile phone business. In order to strengthen the operating capacity in the Chinese market, we establish an independent company controlled by ZTE. The group will provide various investments and supports. We aim to become the mainstream mobile phone brand in China in three years," said Cheng.