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ZTE posts a record 1 billion loss

ZTE with record $1 billion loss for 2018

ZTE went through Really rough times last year since of the ban imposed on the company by the U.S. Commerce Department in April 2018. The ban nearly forced the manufacturer to shut down but 3 months later, it reached to deal by paying fines.

ZTE posts a record $1 billion loss

However, that ban put a significant toll on the company’s finances. For the year 2018, ZTE — one the bringing telecom equipment company in the world, reported an annual loss of whopping 6.98 billion yuan, what roughly converts to $1.04 billion.

While the loss is within the company’s own estimate of loss ranging from 6.2 billion to 7.2 billion yuan, but it’s worse than the 6.2 billion yuan predicted loss by the analysis of investment firms. The company’s annual gross is announced to be 85.5 billion yuan in 2018, down 21.4% from 2017.

It’s noteworthy that the manufacturer did manage to get the things back to normal during the last quarter of 2018, i.e. from October to December during which the manufacturer posted a 276 million yuan net profit, what roughly converts to $41 million, with income amounting to 26.7 billion yuan.

Shenzhen-based ZTE mainly attributed its biggest annual loss to the $1 billion penalties that the manufacturer paid to the US government last year like settlement for breaching the terms of an noted deal on trade sanctions violations.

In order to rescind the ban, ZTE agreed to pay $1 billion in fines and put $400 million in escrow as a down payment against future violations. Further more, the manufacturer also agreed to overhaul its board and executive team. For individuals who are unaware, the ban was imposed on ZTE for selling goods to Iran and North Korea, both of which were under U.S. Economic sanctions at the time.

No matter likely through hard times, the company hasn’t given up on innovating. The manufacturer is working on two concept smartphones with a high screen-to-body ratio. Whereas one uses a side sliding panel to house all cameras and scanners, the additional uses a flap that juts out from the side of the cameraphone to carry the selfie snapper. It is moreover working on a foldable phone.

As claimed by to the data released by Counterpoint Research, ZTE was the fourth most well known smartphone brand in the U.S. with an 11% market share in the initial quarter of 2018. Even so, from the second quarter through the close of the year, ZTE fell out of the top 5.

Read Extra: ZTE Axon S renders leak reveals a horizontal slider, triple rear cameras, and Xenon flash among others

Likely forward, the company is planning to ratchet up investments in 5G technology research and development, along with cybersecurity initiatives, to support the deployment of next-generation mobile networks around the world.

Via

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