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ZTE reports worst fiscal H1 this year, expects to be back on track in 2019

ZTE is down, but not out, and is now planning to make a comeback in 2019. (Source: New York Post)
ZTE is down, but not out, and is now planning to make a comeback in 2019. (Source: New York Post)
It was a rough H1 for ZTE, but the Chinese company is now rising from what looked like a "half past dead" situation. Latest financial report presents losses cumulating US$1.1 due to the US trade bans and fines, and ZTE does not look too affected by this outcome, as its production capacity is back on track. ZTE is also planning to be among the first OEMs to launch 5G handsets next year.

The US export bans imposed on some Chinese companies in early 2018 left ZTE in shambles, but the OEM is not out of business just yet. In fact, now that that the US government has speared ZTE, the Chinese OEM is planning to make a comeback in 2019.

In order to lift the bans, ZTE had to pay US$1.7 billion in sanctions, of which only US$1.4 billion were paid back in July. ZTE also released the financial report for the first half of 2018, and it turns out that all this debacle with the US government caused a US$1.1 billion loss. Even though the company took a dramatic hit, ZTE still expects a net profit of up to US$146.4 million by Q3 2018, while production and orders are now back on schedule.

ZTE hopes to reestablish its projected growth trajectory for 2019 through the advent of the 5G technology. It looks like the first 5G handsets will come from China, and ZTE does not want to miss out on this opportunity. Meanwhile, the Australian 5G ban might put a dent in ZTE’s plans; however, the Chinese OEM might not be affected by this problem, since its presence in Australia was modest at best.

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2018 08 > ZTE reports worst fiscal H1 this year, expects to be back on track in 2019
Bogdan Solca, 2018-08-31 (Update: 2018-08-31)
Bogdan Solca
Bogdan Solca - News Editor
I stepped into the wonderous IT&C world when I was around 7. I was instantly fascinated by computerized graphics, be them from games or 3D applications like 3D Max. I like to keep myself up to date with all the new technologies that get released at an ever increasing rate these days. I'm also an avid SciFi reader, an astrophysics aficionado and, as of late, a crypto geek.