ZTE Doubles Down With New Smartphone

Struggling smartphone maker ZTE Corp. is hoping its newest offering will bring it “double happiness” by serving up an unusual dual-screen design.

The telecom giant rolled out its newest model, the Axon M, on Tuesday in the U.S., where it will launch the model with carrier partner AT&T Inc. The folding phone drew mixed reviews from critics, including praise for its novelty but also criticism for its bulk.

ZTE launched the phone as it struggles for recognition in a smartphone space where models increasingly look the same, featuring large rectangular touchscreens powered by Google’s free Android operating system. ZTE controlled just 2.6% of the global smartphone market in the second quarter of this year, making it the world’s ninth largest player, according to IDC.

The company’s attempt at a major design shift comes as other smartphone makers experiment with the less radical concept of smartphones whose entire face is taken up by the touchscreen, with only razor-thin borders.

“The mobile technology ecosystem and consumer habits have evolved over the past several years, but the smartphone design has only slightly varied throughout that time until today, with the introduction of the Axon M,” said Lixin Cheng, CEO of ZTE’s mobile division. “Consumers need and expect more from their current smartphones and we are proud to partner with carriers around the world to transform their mobile experience.”

ZTE isn’t the first to offer a dual-screen phone, observers noted, pointing out that Japan’s Kyocera and Japan’s NEC had experimented with the format in models that failed to catch on. But the latest offering could benefit from more advanced technology that allows for better viewing over the double screens.

ZTE pointed out the two screens when unfolded can be used to display a single image whose size begins to approach that of tablet computers. The two screens also can be used to run two separate apps at the same time. The model will launch next month in the U.S., Japan, Europe and China.

Online reviews praised the phone for its novelty, but noted its two screens were bulky when folded together. The phone could benefit in the U.S. from ZTE’s deal with AT&T, one of the leading wireless carriers, which will be the exclusive launch partner in that market. Unlike other Chinese smartphone makers, which have mostly moved to developing markets like India, ZTE has been one of the only players to find success in the U.S., where it is currently No. 4 with nearly 10% share, according to IDC.

“In theory a foldable device provides a more tablet-like screen size yet remains pocketable like a phone,” said IDC analyst Bryan Ma. “But in practice it’s not that easy, both in terms of the screen as well as the software. In this case, the market might not be ready yet to digest what ZTE is offering, particularly if apps aren’t able to seamlessly leverage the second screen.”

Contact reporter Yang Ge (geyang@caixin.com)