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ZTE believes that a renewed focus on 5G will help return the company to profitability in 2019
Chinese technology giant, ZTE, has posted a $1.04 billion loss (6.98 billion yuan) for 2018, following a tumultuous year which saw the company pushed to the brink of administration, following its protracted skirmish with the US.
Last year, ZTE paid a fine of $1 billion to the US and placed a further $400 million in escrow, as punishment for violating sanctions enforced by the US.
ZTE looked to have been pushed to the brink of bankruptcy last year, but an eleventh-hour deal brokered by US President, Donald Trump, bought the company back from the edge.
ZTE is the world’s fourth largest manufacturer of telecommunications equipment and has invested heavily in 5G since its resurrection last year. In 2018, ZTE invested $1.62 billion (10.91 billion yuan) in 5G research and development initiatives, 12.8 per cent of the company’s revenues.
"In 2018, ZTE adhered to innovation drive and concentrated on efficiency improvement by focusing on value customers, core products and optimizing R&D structure. It has continuously concentrated on the core 5G technical fields and further intensified 5G R&D investment," the company said in a statement.
ZTE was among the first companies in the world to bring a 5G compatible smartphone to market, when it released its flagship Axon 10 Pro 5G handset at MWC 2019 in February this year.
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