ZTE denies sale of phone business

Chinese technology giant ZTE denied the sales allegations made for the ZTE phone business. The company said that the news did not reflect the truth. He also announced that the legal liability of those who spread the information may come to the fore. Therefore, the statement is a clear answer to the rumors.

We previously reported this claim with the news that ZTE's smartphone division would be sold. ZTE has now announced that these claims are not true.

Allegation made for ZTE phone business

On November 3, a news spread in the Chinese press. Accordingly, ZTE would transfer its smartphone unit to the joint venture. A joint venture means two or more parties manage a business together. Also involved in this venture would be a major internet company and state investors in Shanghai.

The estimated value of the business was allegedly around 40 billion yuan. This amounts to roughly 6 billion dollars. Moreover, it was claimed that the internet company's contribution would reach 8 billion yuan. Therefore, the figure in question meant a very large value for ZTE's phone business.

The rumors were not limited to the phone business. It also explained how other assets would be shared. For example, it was claimed that the gaming brand RedMagic would remain within the group. On the other hand, it was said that the production of router and home network products will return to the direct management of the parent company. However, ZTE stated that this information was not correct.

ZTE's latest figures and the phone market

ZTE's revenue in the first three quarters of 2026 reached 116.838 billion yuan. This figure corresponds to a 16.23 percent increase on an annual basis. So the company's overall revenue continued to grow. However, the situation on the phone side does not exactly correspond to this picture.

The picture is different on the phone side. ZTE ranked only tenth in terms of shipments in the Chinese smartphone market. Moreover, shipments decreased by 52 percent compared to the same period last year. So there's a distinct difference between overall revenue growth and phone performance.

Company response and legal process

ZTE has flatly denied the sales allegations. He also raised the possibility of taking legal action against those who spread the news. The company's denial covers both its phone business and what it says about RedMagic and its networking products. For this reason, the takeover scenario put forward about the ZTE phone business has not been accepted by the company.

For now, a takeover plan for ZTE's phone business has not been announced. It is not yet clear whether the legal process will begin.