--- title: "ZTE Denies $5.6B Smartphone Business Sale Rumors Amid Rising Memory Costs" description: "ZTE has denied reports that it is transferring its smartphone business to a $5.6 billion joint venture, calling them completely untrue. The company's stance comes amid falling smartphone shipments and a strategic pivot toward AI." date: 2026-11-04T23:39:03.981Z lang: en url: https://xab.info/en/posts/zte-denies-smartphone-business-sale-rumors tags: [zte, smartphone-market, memory-chips, ai-smartphones, byte-dance, china-tech] author: "Alexander Buran" publisher: "XAB.info" --- # ZTE Denies $5.6B Smartphone Business Sale Rumors Amid Rising Memory Costs ![Blue ZTE company sign on a glass headquarters building under the open sky](https://xab.info/media/2026/11/04/zte-oproverzhenie-sluhov-o-prodazhe-smartfonnogo-biznesa/zte-oproverzhenie-sluhov-o-prodazhe-smartfonnogo-biznesa-1.webp) ## Key Points - BigGo reported that ZTE discussed transferring its mass consumer division to a JV valued at about 40 billion yuan with an internet company and Shanghai state capital. - On November 3, 2026, ZTE denied the reports, stating they seriously diverge from reality and promising to hold authors accountable. - In Q3 2026, ZTE ranked 10th in the Chinese smartphone market with shipments down 52% year-over-year, while 9-month revenue rose 16.23% to 116.838 billion yuan. - The company is shifting focus toward AI (All in AI, AI for All strategies) and cooperating with ByteDance on AI smartphones and the Doubao Phone Assistant. The global smartphone market is entering one of its most tense periods in recent years. The primary systemic factor has been the sharp surge in memory chip prices, which directly impacts device manufacturing costs and forces makers to either raise retail prices or reduce their product lineups. It is against this backdrop that media reports emerged regarding a potential restructuring of one of China's major telecom players, ZTE. According to BigGo, the company allegedly discussed transferring its mass consumer division to a new joint venture that was to include a major internet company and Shanghai state capital. ### What Was Reported About the Deal and Its Structure According to the same reports, the estimated value of the transferred business was around 40 billion yuan (approximately $5.6 billion), with the internet partner's contribution valued at 8 billion yuan. At the same time, it was claimed that the final terms of the deal, equity distribution, and ownership structure had not yet been agreed upon. Rumor had it that the restructuring would not affect all areas of the mobile division: RedMagic gaming smartphones were planned to be kept within the ZTE group, while the production of routers and home terminals would be returned to the parent company. The joint venture itself was supposed to focus on mass consumer smartphones for both Chinese and international markets. Notably, back in April 2025, ZTE established a subsidiary named Shanghai Shenqi Jiyuan Intelligent Terminal, which observers linked to preparations for potential organizational changes. ### Company Denial and Legal Warnings However, on November 3, 2026, ZTE issued an official statement declaring that reports regarding the transfer of its smartphone business "seriously diverge from reality." The company additionally reserved the right to hold the authors of the publications and all distributors of false information accountable. Consequently, the information concerning the joint venture, its value, and participants has not received official confirmation, and ZTE's public stance has effectively closed the subject of the deal at the corporate communications level. ### Mobile Business Figures: Pressure on Shipments Interest in the potential restructuring is logically tied to the challenging situation within ZTE's mobile segment. In the third quarter of 2026, the company ranked only tenth in the Chinese smartphone market, with its device shipments dropping by 52% compared to the same period last year. Meanwhile, the group's overall financial position looks more resilient: ZTE's total revenue for the first nine months of 2026 grew by 16.23% to reach 116.838 billion yuan, with computing infrastructure accounting for 38% of that figure. This exact imbalance — a weakening consumer mobile segment amid growing B2B areas — explains why the market is monitoring any signals regarding asset redistribution so closely. ### Pivot to Artificial Intelligence In parallel with market pressures, ZTE is reshaping its business with a strong emphasis on artificial intelligence, advancing the strategies «All in AI» and «AI for All». Specifically, the company is cooperating with ByteDance on AI smartphones and the integration of the Doubao Phone Assistant. Taken together, these steps indicate that even if the smartphone business remains within the group, its architecture and product logic are already shifting: the focus is moving from pure hardware competition to intelligent device features, which could become a key factor in fighting for market share amid soaring memory costs. ## Accounts differ ### Transfer of ZTE's smartphone business into a joint venture - **BigGo:** ZTE discussed transferring its mass consumer division to a new joint venture valued at about 40 billion yuan, which was to include an internet company (contributing about 8 billion yuan) and Shanghai state capital; terms and stakes were not finalized. ([3dnews.ru](https://3dnews.ru/1150859/dorogaya-pamyat-perekraivaet-rinok-smartfonov-zte-prishlos-oprovergat-sluhi-o-prodage-biznesa)) - **ZTE:** Reports regarding the transfer of the smartphone business seriously diverge from reality; the company reserves the right to hold publication authors and distributors of false information accountable. ([3dnews.ru](https://3dnews.ru/1150859/dorogaya-pamyat-perekraivaet-rinok-smartfonov-zte-prishlos-oprovergat-sluhi-o-prodage-biznesa)) *Where they agree:* Reports regarding a potential deal entered the public domain and prompted a reaction from ZTE itself; there is no official confirmation of the deal. ## Fact-Check & Sources - [Дорогая память перекраивает рынок смартфонов: ZTE пришлось опровергать слухи о продаже бизнеса window-new](https://3dnews.ru/1150859/dorogaya-pamyat-perekraivaet-rinok-smartfonov-zte-prishlos-oprovergat-sluhi-o-prodage-biznesa) - The primary source contains both BigGo's rumor regarding the JV and ZTE's official denial dated November 3, 2026, as well as financial data for the first 9 months of 2026 and Q3 2026. The denial is confirmed; the negotiation claim is unconfirmed by the company. ## FAQ ### Will ZTE sell its smartphone business? No, there is no official confirmation of the deal. On November 3, 2026, ZTE stated that reports about transferring the business to a joint venture seriously diverge from reality and reserved the right to hold the publication authors accountable. ### What was reported about the structure of the proposed deal? According to BigGo, ZTE allegedly discussed transferring its mass consumer division to a JV valued at around 40 billion yuan (approx. $5.6 billion), involving an internet company (contributing about 8 billion yuan) and Shanghai state capital. RedMagic gaming smartphones reportedly would have stayed within the group. ### How is ZTE performing in the smartphone market in 2026? In the third quarter of 2026, ZTE ranked tenth in the Chinese smartphone market, with device shipments declining by 52% year-over-year. However, the group's total revenue for the first nine months increased by 16.23% to 116.838 billion yuan.