ZTE Attempts To Double Marketshare

China’s ZTE Corp, the world’s seventh-largest smartphone maker, wants to nearly double its U.S. market share in the next three years by increasing spending on marketing.

ZTE, which trails nearby rival Huawei Technologies Co Ltd in selling both smartphones and telecoms equipment, wants more share of the fat profit margins promised by sales of high-end phones in the United States.

But the company needs to first work on its image. Its mainstay telecom equipment business was essentially shut out of the U.S. and other markets after government officials flagged security concerns about Chinese-made equipment.

ZTE targets a U.S. market share of 10 percent by 2017 from 6 percent in 2013, Lv Qianhao, global marketing director of mobile devices, told Reuters at a company event on Thursday.

That would place it a distant third behind Apple Inc with 41 percent and Samsung Electronics Co Ltd with 26 percent, according to September-November data from researcher comScore.

To that end, ZTE will increase its U.S. marketing budget by at least 120 percent this year from last, Lv said without elaborating. Like other Chinese handset makers, ZTE is grappling with low brand awareness in the world’s second-largest smartphone market and perceptions of inferior quality.

Samsung Electronics, which earns around two-thirds of its operating profit from its mobile division, spent $597 million on marketing in the United States in 2012, according to researcher AdAge.

Last year, ZTE signed a deal with the Houston Rockets basketball team and released a Rockets-branded phone.

“We want young U.S. consumers to participate in our marketing activities, so we will have more NBA (National Basketball Association) stores and channels that sell our products,” Lv said.

Globally, ZTE aims to ship around 60 million smartphones this year compared with about 40 million smartphones last year, said Senior Vice President Zhang Renjun.

The company sees much of that growth in developed markets – including Russia and China- which accounted for 68 percent of mobile device revenue last year compared with 35 percent in 2007, said Lv.

ZTE’s mobile device business sells feature phones as well as smartphones. It was the fifth-biggest mobile phone vendor in July-September, according to researcher Gartner, though it fell out of the top five smartphone sellers list in the same period.

ZTE expects to have swung to a profit for last year having booked its first-ever loss as a public company in 2012.

It based its turnaround on cutting costs, signing fewer low-margin contracts, and winning contracts to build fourth generation telecommunication networks.

The company expects global investment in 4G to reach $100 billion this year, Zhang said.

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Adobe Says No To Android’s Chrome

Chrome for Android will not run Flash Player, the popular software that Apple has famously banned, Adobe confirmed Wednesday.

The acknowledgment was no surprise: Last November, Adobe announced it was abandoning development of Flash for mobile browsers. In other words, Google missed the Flash boat by several months.

“Adobe is no longer developing Flash Player for mobile browsers, and thus Chrome for Android Beta does not support Flash content,” said Bill Howard, a group product manager on the Flash team, in an Adobe blog Tuesday.

The stock Android browser included with the operating system does support Flash, noted Howard.

Adobe explained its decision to halt work on Flash Player for mobile browsers as necessary to shift resources, notably to its efforts on HTML5, the still-developing standard that will ultimately replace many of the functions Flash has offered.

“We will continue to leverage our experience with Flash to accelerate our work with the W3C and WebKit to bring similar capabilities to HTML5 as quickly as possible,” Danny Winokur, the Adobe executive in charge of interactive development, said last year. He was referring to the World Wide Web Consortium standards body and WebKit, the open-source browser engine that powers Chrome and Apple’s Safari. “And we will design new features in Flash for a smooth transition to HTML5 as the standards evolve.”

Analysts read the move as a tacit surrender to the trend, first seen at Apple, to skip support for Flash on smartphones and tablets. In 2010, former Apple Steve Jobs had famously dismissed Flash as unsuitable for mobile devices because it was slow, drained batteries and posed security problems.

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