ZTE’s troubles are far from over, with market confidence in shreds and internal struggles
ZTE is technically back in business after a “disastrous” temporary ban on dealings with US companies including key partners Qualcomm, Corning and Google, but actually rebooting normal operations is likely to take quite a bit of time.
You may have to wait at least one more month until the Chinese company can start shipping smartphones again, a delay obviously costing ZTE an arm and a leg, although the real, long-term problem might be regaining “market confidence.”
Two employees speaking to Reuters reporters on condition of anonymity have voiced their concerns over “getting future business”, as well as “lots of internal power struggles to come.”
Under the terms of the ban-lifting agreement with the US Department of Commerce, ZTE needs to reform its entire management team, which will no doubt create an enormous vacuum power, despite the impending appointment of an American compliance commission overseeing the tech giant’s affairs.
The succession process of the “many bosses” that will be gone at the same time is currently unclear, and there are also fears among staff members of pay cuts and possible job losses.
In short, while the company’s survival is no longer in question, at least for the time being, its stability and financial prosperity continue to be threatened by numerous factors.
For what it’s worth, ZTE Chairman Yin Yimin has reportedly apologized to employees, clients, stockholders and business partners, promising to learn from the mistakes that led to the company’s “huge losses”, and “hold those responsible accountable.”