ZTE plans to increase marketing spending, aims the top three spots in the US
ZTE may not be a big name in the US, but when it comes to smartphone shipments, the Chinese company is already the fourth on the market. They currently sell budget-friendly handsets in the US, but the recent launch of the high-end Axon smartphone comes to take care of the brand awareness part as well.
Strange enough, ZTE decided to avoid teasing the Axon as a ZTE product until the official launch even in New York City. According to their CEO of Mobile Devices Adam Zeng, "If customers know it is a Chinese brand, they might assume it’s a cheap phone." so they chose not to connect it with the ZTE name at first. Zeng also unveiled that ZTE has decided to double its marketing spending each year until 2018, when they plan to grab the third spot on the US smartphone market, a position that is currently being held by LG.
During this year, the entire company invested more than $161 million in marketing. In the US, Zeng says they will continue to stay away from traditional advertising, but will also remain a sponsor of various NBA teams. If Axon turns into a big success, they may not need any other advertising, either.