For the smartphone market, China-based ZTE and Huawei Technologies previously mainly focused on the low-price segment and their presence in high-end segment was rare. But they have changed their strategies.

Following Huawei's introduction of an ultra-thin model at CES 2012, both companies have been clearly keen to revamp their images by launching more high-end models. The displays, cameras, and processors of the high-end models from the two firms are comparable to those found in first-tier brands' smartphones.

In 2012, ZTE and Huawei will continue to develop low-price models but they will step up their challenge against first-tier competitors with products that have comparable quality but lower prices. Digitimes Research predicts that even though the 2012 smartphone shipments from ZTE and Huawei are unlikely to grow as fast as what they have seen over the past two years, they will still significantly outperform the market average growth of about 40%.

• For the smartphone market, China-based ZTE and Huawei Technologies previously mainly focused on the low-price segment and their presence in high-end segment was rare.
• But they have changed their strategies. Following Huawei's introduction of an ultra-thin model at CES 2012, both companies have been clearly keen to revamp their images by launching more high-end models. The displays, cameras, and processors of the high-end models from the two firms are comparable to those found in first-tier brands' smartphones.
• In 2012, ZTE and Huawei will continue to develop low-price models but they will step up their challenge against first-tier competitors with products that have comparable quality but lower prices. Digitimes Research predicts that even though the 2012 smartphone shipments from ZTE and Huawei are unlikely to grow as fast as what they have seen over the past two years, they will still significantly outperform the market average growth of about 40%.

Huawei introduced four phone series under the Ascend family at MWC 2012. But the company's focus at the show was almost entirely on the top-of-the-line D (Diamond) series.

Deviating from its previous practice of exhibiting mainly low-price models, Huawei focused on high-end models with quad-core processors and HD panels.

• As of the end of February 2012, all other quad-core mobile phones and tablet PCs available in the market or unveiled by vendors had run on Nvidia Tegra 3 processors. But Huawei's quad-core mobile devices adopt the K3V2 processor produced by its subsidiary, HiSilicon Technologies.
• K3V2 is a quad-core Cortex-A9 processor with 16-core GPU and 64-bit memory bus (Tegra 3 only has 32-bit). Made on 40nm process with a package size of 12x12mm, K3V2 is claimed to be the smallest quad-core processor.

• Three of the Ascend D series phones consist of 4.5-inch HD TFT-LCD panels. The Ascend D quad and Ascend D quad XL both adopt K3V2 quad-core processors. The former phone has a slimmer form factor, smaller battery capacity and a 1.2GHz processor clock speed. The latter model is thicker, but it has a faster clock speed of 1.5GHz and bigger battery capacity.
• The Ascend G is a low-price model and the first Huawei phone to be sold worldwide through telecom carrier Vodafone.

• Huawei also exhibited two high-end LTE mobile phones. The two models did not adopt the K3V2 processor but instead adopted Qualcomm's MSM8960. This SOC consists of Qualcomm's new generation of Krait core made on 28nm process to integrate and support LTE base band.
• The two models have similar specs, the main difference is that Ascend P1 lte adopts a 4.3-inch HD AMOLED panel while the other adopts a 4.5-inch HD TFT-LCD panel.

• ZTE exhibited around 10 new smartphone models and nine of the models were introduced through press releases and launch conferences a few days after MWC 2012. In particular, among the nine models, eight were Android phones while one was a Windows Phone.
• The models include high-end products with quad-core processors and HD panels, middle- to high-level LTE models, low-price models and entry-level phones.

• PF112 can be considered the most high-end model among ZTE's exhibits at MWC 2012. The model consists of an HD panel and Qualcomm's MSM8260A processor. The SOC adopts Qualcomm's Krait core on 28nm process to support and integrate base bands.
• Era and Mimaso X both adopt the Nvidia Icera 450 base band solution and are the first smartphones to adopt software modems. The former is a high-end product that consists of a quad-core Tegra 3 processor, the latter, a medium- to high-level product, adopts a dual-core Tegra 2 processor. For Nvidia, the launch of the two models marks a new milestone.
• PF200 is a high-end LTE mobile phone.

• N910 is a middle-level LTE Android 4.0 mobile phone.
• Skate Acqua, Blade II and Orbit are all low-price models. Skate Acqua and Blade II both run on the Android platform while Orbit uses Windows. The three models all adopt Qualcomm's MSM7227A, a single-core 1GHz processor with Cortex-A5 structure. The chip was introduced by Qualcomm in second-half 2011 specifically for low-price smartphones.
• Kis is an entry-level model with a very low price. The phone adopts the MSM7225A processor with Cortex-A5 strucutre. The structure was designed by ARM specifically for smartphones that are in the price range of US$100-150.

• From MWC 2012, it is not hard to see that Huawei and ZTE are trying to change their brand image from low-price models to high-end brands. The high-end mobile phones introduced by the two firms have comparable quality to first-tier brands.
• To save costs, the largest ROM of models introduced by Huawei and ZTE is 8GB (with microSD slots for users to expand memory capacity). However, most first-tier brands have high-end models that contain 16GB or 32GB ROMs. Huawei and ZTE have been saving costs by using less NAND flash to differentiate their high-end products from others through price differences.

• With relatively low base periods, ZTE and Huawei both experienced smartphone shipment growth beyond 300% (or close to 500%) in 2010 and 2011, far beyond the growth rate of the overall market.
• In 2012, ZTE and Huawei will continue to develop low-price models while challenging first-tier mobile products by offering smartphones with comparable quality in lower prices. Digitimes Research predicts that even though ZTE's and Huawei's 2012 smartphone shipments are unlikely to show growth as significant as that in the past two years, the growth will be beyond 100%, much more than the overall market growth of 40%.