ZTE Corp, one of the leading telecom equipment manufacturer, is confident that the company will turnaround its business this year and is predicting net profit of around 1.2 billion yuan ($178 million) and 1.8 billion yuan in the first half.

This is significant given that the company reported 7.8 billion yuan loss during the same six-month period in 2018. The latest development comes after the business continues to improve after a near-death experience last year.

Last year, in June, ZTE agreed to pay around $1 billion in fines to the US Department of Commerce and put up additional $400 million as surety as part of its settlement for violating US prohibitions against selling American equipment to Iran.

As a part of the same agreement, the company was also required to replace its board and terminate all executives ranked above senior vice-president, as well as anyone involved in the Iran violations.

When the company was banned from doing business in the US and with the companies based in the US, the company had to cease major operating activities for nearly four months. But, it decided to increase its focus in the R&D for 5G technology.

Coming to the finanacials, the company’s net profit was 863 million yuan for the three-month period ending March compared with a 5.4 billion yuan loss in the same period last year. ZTE‘s first-quarter revenue was 22.2 billion yuan, down 19.3 per cent from the first three months of last year.

The Research & Development costs for the first three months of this year amounted to 3.1 billion yuan, accounting for 13.9 percent of revenue, up compared to a ratio of 9.8 percent for the same period last year.

Read More: ZTE Axon V concept phone appears with 21:9 notch-less display and 3D dual selfie camera

Earlier this year, during Mobile World Congress in Barcelona, the company said that it had secured six commercial 5G contracts on top of its large supply deals with China Mobile, China Unicom and China Telecom.

(Via)

The post ZTE is eyeing $178 million first-half profit after boosting R&D spending for 5G development appeared first on Gizmochina.

The China-based company has reported a profit of 14.6 billion yuan (approximately $2.1 billion) in the second quarter, a significant jump compared to the last year when the company reported 11.9 billion yuan.

The company says that its sales grew 68.3 percent to 45.23 billion yuan, up from 26.9 billion yuan a year earlier. The growth in sales for Xiaomi can be attributed to the higher smartphone sales volume and higher average selling price for these devices.

Xiaomi, which is mainly known for its budget smartphones, recorded revenue of 30.5 billion yuan for its smartphone business in the second quarter, a surge of 58.7 percent compared to the same period last year. The company claimed that it managed total shipments of 32 million smartphone units in Q2 2018.

However, analysts believe that the Chinese company is eyeing for the Internet-of-Things (IoT) market. Xiaomi reported that revenue from its IoT products, which includes smart TV sets and laptop computers, increased 104.3 percent to 10.4 billion yuan. Further, it adds that revenue from internet services, which include online advertising, rose 63.6 percent to 4 billion yuan.

The company reports that 36 percent of the revenue comes from international markets. Its worldwide growth is 151 percent on a yearly basis and while the increase comes predominantly from India, the company also reports about progress in Indonesia and European countries.

Read More: Xiaomi or Samsung, which company is leading the Indian smartphone market?

In line with its dream of dominating the global markets, Xiaomi recently launched a new sub-brand name POCO in India and POCOPHONE globally. The brand will focus on premium affordable devices to take on the likes of OnePlus and Huawei’s Honor. Yesterday, it launched the first smartphone under this new brand — POCO F1, which is touted as the cheapest Snapdragon 845-powered smartphone, with price starting at Rs. 19,999, roughly $286.

The post Xiaomi reports 68% revenue jump in Q2 2018, ships 32 million smartphones appeared first on Gizmochina.