Huawei and ZTE's Key Development Strategies for 2008

The last few years have seen a new wave of M&A activity in the global mobile communications industry, including the merger between Lucent and Alcatel, Nokia' s acquisition of Siemens' network equipment division, and Ericsson' s acquisition of Marconi. One of the key factors driving this trend has been the emergence of major new players such as Huawei and ZTE in the global mobile communications equipment market. By 2007, overseas sales accounted for over 50% of total sales for both Huawei and ZTE. In 2008, the two companies have been restructuring their network equipment businesses, while also allocating more resources to mobile phone production and working even more actively to develop overseas markets. This report will examine the business strategies that Huawei and ZTE are adopting in 2008.