ZTE falls amid concern over Apple lawsuit
Updated: 2012-08-28 10:22
ZTE Corp, China's second-largest phone equipment maker, fell the most in six weeks on Monday on concern that Apple's victory in a patent lawsuit against Samsung Electronics Co could hurt other Android phone makers.
Apple won more than $1 billion after a US jury found Samsung infringed six of seven patents for its mobile devices that run Google Inc's Android operating system.
ZTE, based in Shenzhen, became the world's fourth-largest mobile-device seller in the fourth quarter, trailing Nokia Oyj, Samsung and Apple Inc. The company said in January it plans to double smartphone sales this year.
"In the long term, this is negative to all Android phone makers including ZTE, since US operators may become reluctant to buy Android phones unless they can make sure there is no legal risk," said Leping Huang, a telecoms analyst at Nomura International Hong Kong Ltd.
Because ZTE has devices running Microsoft Corp's Windows Phone operating system and will release a model with the Windows 8 Phone system in early 2013, the ruling may make its product portfolio more balanced between Android and Windows Phone, Huang added.
China Daily - Agencies