ZTE Says It has Ceased Most Business Functions After Ban
ZTE has all but shut down in the wake of a government-issued ban that prevents U.S. companies from selling ZTE hardware or software. "As a result of the Denial Order, the major operating activities of the company have ceased," said ZTE in exchange filings. "As of now, the company maintains sufficient cash and strictly adheres to its commercial obligations subject to compliance with laws and regulations." The company has maintained some staff in order to fight the ban. It is talking to the U.S. "in order to facilitate the modification or reversal of the Denial Order by the U.S. government and forge a positive outcome in the development of matters." The company didn't spell out details of its operations shutdown. ZTE enjoyed success in the U.S. over the last few years where it found a niche selling low-priced, big-screened Android phones via prepaid carriers MetroPCS and Cricket Wireless. The company's U.S. partners have been silent on its fate since the ban was first ordered. Speaking on the sidelines of the Google I/O developer conference, one Google executive said the situation "was bad for Android."
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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