Thanks to ZTE’s carefully-planned US strategy, it could soon overtake LG

ZTE’s smartphone shipments increased by 36 percent this past quarter, and if its growth continues, it might soon overtake LG to become the third largest smartphone manufacturer in the US.

Even just few years ago, ZTE had essentially no brand recognition in the US – nobody bought it, and nobody knew what it was. However, the Android world has changed drastically since, with Chinese OEMs rising rapidly against more established brands like Samsung and LG. And ZTE is no exception. While its presence in China isn’t as strong as that of HUAWEI or vivo, its carefully-planned US strategy seems to be paying off in what is arguably one of the most difficult markets to penetrate.

According to the latest data by Counterpoint Technology, ZTE’s US smartphone shipments increased by 36 percent during the second quarter of this year to a commendable 4.8 million units, making it the fourth largest smartphone manufacturer in the country. ZTE had a 10.1 percent market share during the first quarter, which increased to 11.5 percent during the second quarter. In comparison, Samsung and Apple led the market with about 30 percent each with LG as a distant third with 15.4 percent.

As Lixin Cheng, the chief executive of ZTE’s mobile devices, explains, the US is a particularly difficult market to break into but offers a lot of opportunities:

The U.S. is the most competitive market, but we believe if we can manage the challenge well, it will drive the overall competitiveness of our company.

And Cheng is right – if ZTE manages to keep up its relationship with US carriers and bring affordable yet capable devices, its growth might continue and help the company overtake LG. LG’s smartphones aren’t doing well stateside, whose premium smartphones are priced too high to be competitive. However, as The Wall Street Journal points out, some analysts say that ZTE must build more rapport with US carriers. After all, most smartphone purchases are made through carriers in the US, and ZTE’s reliance on Amazon and Best Buy might hurt its chances to break into the top three.

Do you own a ZTE device? Do you think it could see continued growth over the next few quarters? Let us know by leaving a comment below!