China's ZTE reports nearly 50% profit drop in 2012 first halfAugust 22, 2012 - 17:32 AMT PanARMENIAN.Net - Chinese phone maker ZTE saw its profits drop by almost 50 percent in the first half of 2012 despite an increase in sales from the same period last year, The Inquirer reports. ZTE, known for its cut-price Android smartphones and network infrastructure equipment, released its half-yearly financials showing that revenue increased by 15.21 percent to RMB 42.6bn. While ZTE enjoyed healthy growth in revenues its profits fell off a cliff, dropping 48.5 percent to RMB 655m. According to ZTE, the firm suffered from "slackened global economic growth, continued competition in the telecommunications industry and volatility in exchange rates". In the firm's financial report, it elaborated further, saying, "The [ZTE] Group's net profit declined in comparison the same period last year, reflecting reduced investment income, exchange losses, postponement of network contract tenders of certain domestic carriers and lower gross profit margin." In the last few years Huawei and ZTE have been winning numerous network infrastructure contacts as mobile operators start migrating to fourth generation Long Term Evolution (LTE) networks. In the past year both firms have come under increasing pressure, with some countries alleging that they have links with the Chinese government and military. While ZTE's profits downturn is cause for concern, the firm's revenue still showed impressive growth and with more nations auctioning off 4G spectrum, there's still plenty of business to go around. Top stories Yerevan will host the 2024 edition of the World Congress On Information Technology (WCIT). Rustam Badasyan said due to the lack of such regulation, the state budget is deprived of VAT revenues. Krisp’s smart noise suppression tech silences ambient sounds and isolates your voice for calls. Gurgen Khachatryan claimed that the "illegalities have been taking place in 2020." Partner news Most popular in the section | Russia clarifying reports on Baku’s alleged arms supply to Ukraine Russia says is carefully working to verify reports about alleged arms supplies from Azerbaijan to Ukraine Russia warns Armenia against “falling into West’s trap” Zakharova maintained, however, that anything that will benefit the people of Armenia can only be welcomed. CSTO: Armenia has not participated in secretariat’s work recently Recently Armenia has not participated in the work of the secretariat of the CSTO, Imangali Tasmagambetov said. Meeting with U.S., EU not against third parties, says Armenia The meeting scheduled for April 5 is dedicated to strengthening of the Armenia-EU-US cooperation, Yerevan added. |