ZTE Prepping Action Against Commerce Department Ban
ZTE today said it is preparing to take "certain actions" within the scope of U.S. law to fight the Commerce Department's ban against the company. Earlier this month, the Commerce Department banned U.S. companies from selling ZTE hardware or software, such as mobile processors and the Android operating system, for a period of seven years. The move puts ZTE's survival as a phone company at critical risk. Without access to Android, in particular, ZTE will not be able to sell phones in the U.S., where it has found a comfortable niche with prepaid carriers including Cricket Wireless and MetroPCS. The ban was put into effect because ZTE broke a 2017 settlement agreement concerning its sale of forbidden items to Iran. ZTE did not spell out exactly what actions it will take. Late last week a member of the Commerce Department said it will allow ZTE to argue its case via unofficial channels.
Very affordable phones with huge screens have been a relatively popular segment in the US in recent years. ZTE used to address this market well.
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