William Chhao, ZTE: 'we want to get out of the low cost in smartphones'

Two giants, but the same strategy. Huawei has marked the spirits a few days ago introducing with great pomp the Ascend P6, a high-end smartphone to rival the flagship Samsung or Apple.

It is for the giant to install its brand in the West and become a credible alternative for operators and consumers. A strategy perfectly identical to that of its big competitor ZTE, known in Europe for its mobile and key 3G white label at low prices as for its smartphones.

However, in recent years, ZTE tries the move upmarket under his name, particularly in Europe with France as a bridgehead. With results since the group became the 5th global manufacturer of smartphones according to Gartner (in the first quarter).

Still, this success is still of this white mark policy, a strategy that ZTE intends to influence by strengthening its catalogue under his name and thus break this image of low-cost manufacturer. How to achieve this objective? The responses of William Chhao, Director of sales of terminals for ZTE France.

ZDNet.fr: the France is the country where you started to implement your new strategy. Bearing fruit?

William Chhao : I can not yet give precise figures but observed a decrease in the sales volumes and an increase in value. This means that our progressive disengagement of the feature-phones begins to pay. Our aim is clearly to focus on smartphones sold under our brand and hang the place of number 3 worldwide.

-So far, 90% of your activity in France is still carried out by white label terminals. Do you intend to terminate gradually?

No, remembered where it comes and we have a true know-how in this field which indeed still represents the bulk of our revenues in Europe and France. But in this area also, we evolve. Terminals proposed operators are also soaring range. Thus, the Xtrem Star which is sold under the brand name SFR since June 18 is an evolution of our Grand Memo with slightly less powerful specifications. Our partner operators playing this move upmarket.

N ' are there not then a risk of cannibalization between these white smartphones and smartphones sold under your name?

The "dual branding" is an intermediate step which is the prerequisite for implementing our strategy. It helps to strengthen our links with operators so that they properly reference our products. Because the tickets are expensive. But as it's been years since working with them, it is easier for us even if the selection is very strict and that certain products are rejected.

-Rest that ZTE is still little known as a mark and even less as a manufacturer of smartphone...

We suffer in effect still an image deficit, but things are changing, thanks to the operators. We're serene, we are gradually moving to install our image and get out of the low cost through the "dual branding" that I mentioned. Our goal: that consumers purchase for ZTE ZTE and not only for the price.

-Precisely what are the axes of your move upmarket on smartphones?

In the high-end segment, we especially focus on the hardware with the use of Intel processors. We started with the chip Medfield for the large X In which is proposed by SFR under the name Star Addict 2 +. We will continue with the processors Clover Trail with the Grand X 2 In which will be launched in the fourth quarter. Negotiations are underway with the French operators. We also rely heavily on the 4G.

-None of the French operators offers at the moment of smartphones 4 ZTE G...

They prefer for the moment communicating strong brands, it is logical. It is hoped to be present at the last quarter when demand is really there. But from there to speak volumes... But we are convinced to have a card to play, we will be 50% cheaper than brands.

-The launch of a terminal under Firefox OS mean that ZTE is seeking to reduce its dependence on Android?

We do not want to put our eggs in the same basket, either the hardware or the OS. So far, we are pragmatic, it's a test we do request the operator Telefonica. But there's a real shot to play in the emerging countries with less than $ 50 terminals. Firefox OS can fill this niche. Will develop more products if the success for the operator is satisfactory. Remains that alternatives to iOS and Android have never really worked.

- And side Windows Phone?

We wait and so far, nothing is planned in the roadmap. First, there is that historically, Windows has never really emerged in the mobile. Then, we consider that Microsoft is not flexible enough. Such chassis, to such chipset, such RAM, such configuration. All this is far too rigid. It is impossible to compete with Android like that.

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Key figures: sales of mobile and smartphones