ZTE with record $1 billion loss for 2018

March 28th, 2019   Mobi Mart.it   news Tags:

ZTE went through Really rough times last year since of the ban imposed on the manufacturer by the U.S. Commerce Department in April 2018. The ban nearly forced the company to shut down however three 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 leading 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 reported to be 85.5 billion yuan in 2018, down 21.4% from 2017.

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

Shenzhen-based ZTE mainly attributed its largest annual loss to the $1 billion penalties that the manufacturer paid to the US government last year as settlement for breaching the terms of an earlier 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, the company moreover 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 what were under U.S. Economic sanctions at the time.

Despite heading through hard times, the manufacturer hasn’t given up on innovating. The manufacturer is working on two concept phones with a high screen-to-body ratio. Even though one uses a side sliding screen to house all digital cameras and sensors, 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 smartphone.

As claimed by to the information, launched by Counterpoint Research, ZTE was the fourth most outstanding 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 end 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 tech research and development, together with cybersecurity initiatives, to support the deployment of next-generation mobile networks around the world.

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Written by Mobi Mart.it

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