Research chips, build a system!With a net profit of over 6.5 billion yuan a year, can ZTE become the next Huawei?

2022-06-09 0 By

January 28, China Securities Journal news, ZTE released the 2021 annual performance forecast, the report shows that it is expected in 2021, ZTE will achieve more than 6.5 billion yuan of net profit.By contrast, in 2020, ZTE’s net profit was only 4.26 billion yuan, indicating that the company’s net profit in 2021 reached another record high.So why did ZTE’s net profit grow so quickly?The main reason, according to ZTE’s announcement, is that ZTE’s government-enterprise business, consumer business and carrier network business all achieved growth.Take carrier business as an example. In the past 2021, ZTE participated in the construction of 5G network in China and won mobile and linkage orders.At the same time, in the overseas market, ZTE is actively participating in the 5G construction of various countries, grasping the market opportunities such as network upgrade and home broadband upgrade, further enhancing its influence in the international market, and promoting the rapid growth of operator business.In fact, ZTE’s business structure is very similar to Huawei’s, but In 2021, Huawei will not be so lucky, because of the well-known reasons, its revenue will decline significantly.But zte, which has kept a low profile, now has such a high revenue performance, many believe that ZTE can become the second Huawei in China’s technology sector.In terms of volume, even if Huawei encounters various unfair treatment, ZTE cannot match it, and there is a big gap in both operator business and consumer business.But there is no denying that ZTE is moving in huawei’s direction, especially in cutting-edge technologies such as chips and operating systems.Let’s take a look at ZTE’s achievements in operating system. In November 2021, ZTE released its own new fulcrum operating system. According to the author, zte’s new Fulcrum operating system was researched earlier than Hongmeng System.At present, the new fulcrum operating system has been developed very mature, according to ZTE, the new fulcrum operating system can be applied to multiple chip architecture platform, and the system has been applied to the fuxing high-speed train on a large scale.Moreover, zte’s new fulcrum operating system can also be widely used in communications, finance, government and enterprise fields of different dimensions.Not to put too fine a point on it, the new Fulcrum operating system has extremely strong compatibility, giving it a wider range of application scenarios.In terms of chips, ZTE also has strong self-research strength. According to the data released by the company, zte’s annual shipment of terminal products reached 100 million units in 2021, of which 50% use self-research chips.Of course, ZTE’s chip strength is not only reflected in the product, but also in the technical reserve, ZTE has also established a strong technical barrier.On January 26, National Business Daily news, ZTE publicly stated on the investor interactive platform that by June 30, 2021, ZTE’s chip patent applications have reached 4,400, among which the authorized chip patents reached 1,950.Strong chip technology reserves, so that ZTE in the field of chip development more smoothly.Admittedly, ZTE has made considerable achievements in the field of chips and operating systems, but there is still a big gap between ZTE and Huawei.In my opinion, it is not easy for ZTE to become the second Huawei. Take R&D investment of ZTE as an example. Zte’s r&d investment is only tens of billions each year, while Huawei’s r&d investment has reached hundreds of billions.To develop into a technology company like Huawei, ZTE needs to continuously increase investment in RESEARCH and development, and actively explore cutting-edge fields to further promote the rapid development of Science and technology in China.Until now, ZTE has been developing core technologies. In addition to chips and operating systems, 5G technology is also very strong, and ZTE is very well-known in the global 5G field.In short, I believe that ZTE will definitely become a technology company like Huawei in the future.