With brands like Samsung and HTC maintaining a stronghold on the global markets, China-based vendor ZTE decided it needed something dynamic to shake this hold.  IDC report indicated that ZTE shipped only 7.5 million smartphones in the third quarter of 2012 constituting a meager 4.2% of the market share.

The launch of Nubia, a high end smartphone by ZTE is expected to be their answer to get a bigger share of the market.

Executive Vice President of ZTE, He Shi-you said that they sell almost 90% of its handsets through cooperation with various telecom and network operators. Most operators demand phones at the least possible value, leaving a very small profit margin for ZTE. The profits they make on the remaining 10% of their handsets are also negligible.

The Nubia high end smartphones will operate with an independent subsidiary and is thus expected to bridge the profit gap for ZTE.