ZTE confirmed a sharp fall in net profit for the first half, down 68 percent year-on-year to CNY 244.9 million. The company was affected by price pressure, delayed orders in China and the costs of expanding its handset sales, as well as forex losses, lower investment income and higher financing costs. Revenues were up 15.2 percent to CNY 42.64 billion, according Telecompaper. Carrier network equipment remained the largest part of the business at CNY 21.28 billion in sales, up 3.9 percent from a year ago thanks to continued targeting of emerging markets. Terminal products rose by 27.1 percent to CNY 14.25 billion, driven by 3G handset sales in China, and telecom software and systems sales increased 33.8 percent to CNY 7.11 billion. For the second half, ZTE said it will continue to target "populous nations and mainstream carriers" as well as look for expansion in the public sector.
