Wednesday, August 22, 2012

Mobile Phone Surprise

I revisited the Gartner global phone figures I published in an earlier post and found a surprising statistic.

Only three companies in the world GREW sales more than 1%, Samsung 5.3%, Apple 2.3% and ZTE 1.3%.

Now Samsung and Apple shares are at the top of their game, but ZTE has fallen from a high of over 30rmb to a current price of 11rmb. The reason was a dramatic profit decline. ZTE makes phones but they are tiny part of a huge telecoms giant. I am not suggesting they are a good investment at this point as I have just begun to look at their company. But it is interesting that everyone else lost share....they stand out from the crowd.

Below from Reuters this week.

(Reuters) - ZTE Corp (0763.HK), the world's fourth-biggest mobile phone vendor and fifth-ranked telecoms gear maker, posted an 85 percent drop in quarterly profit, as the Chinese firm's margins were squeezed by sluggish equipment sales and fierce competition in handsets.

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