ZTE has reported its full year 2014 results showing a 94% increase in net profits, which the Chinese vendor attributed to 4G network equipment and smartphone sales. The kit maker claimed to be the world’s fastest growing provider of 4G solutions in 2014, and said it is using its strong position in the market to take the lead in 5G technology research.
The firm reported total annual net profit of RMB2.6 billion ($423.5 million), and revenues came to RMB81.47 billion representing a year-on-year increase of 8.3%. Revenue from international operations accounted for 50.2% (RMB40.89 billion) of total revenues.
The company said it achieved growth in the mobile phones business thanks to improved branding, channel distribution and services. It also reported growth for access terminals and gigabit optical network (GPON) products within the wireline business, as well as increased market share in optical transport networks.
According to ZTE, the traditional telecoms market is facing a bottleneck but high growth in data services are driving operator transition to internet services.
“The mobile internet era is set to become the main theme of the development of the telecommunications industry, from traditional interpersonal communication, gradually expanding to the communication of people and machines/devices.”
The firm said in a statement.
The vendor said it will focus on pursuing opportunities rich communication suites (RCS), cloud services and ‘smart city’, targeting the enterprise sector. Last year it unveiled its M-ICT (mobile ICT) strategy, which it claimed helps it better position itself within all the different areas it now operates in: telecoms, enterprise ICT and consumer devices.