Following accusations of espionage by the US government, ZTE announced that it will turn its focus to selling consumer mobile phones instead of enterprise networking products.
On October 18, at a conference in Milan, ZTE Vice President He Shiyou, announced that ZTE would shift its focus to mobile phones. This announcement comes after a couple of difficult weeks for the company. Earlier this month, the US House of Representatives' Intelligence Committee accused ZTE and Huawei of potential espionage and warned companies not to use their products.
With the threat of being booted out of the US and other western markets, ZTE management has cut executives' pay, consolidated departments, and dropped unnecessary products. He Shiyou said, "This is difficult for all of us, but the key to success is being able to better meet challenges, make the right adjustments, and find new opportunities for development."
[ZTE's Grand X LTE T82]
Having been suspected of espionage through business wireless networks, ZTE will turn to consumer products, especially mobile phones. Today, mobile phone sales account for 35% of ZTE's revenue, but He Shiyou aims to increase sales to 50% of total revenue over the next three years.