China-based phone maker ZTE "has poured a significant chunk of its U.S. marketing budget" into sponsoring the Warriors, Rockets and Knicks, according to Ina Fried of RE/CODE. ZTE "tripled its U.S. marketing budget this year." ZTE USA Chair & CEO Lixin Cheng acknowledged that the company "lacks the big bucks of its bigger rivals like Samsung and Apple who can afford lots of TV ads and billboards." He said, "We don’t have the same deep pockets as some of the competitors, (but) we would like to break the vicious circle of burning consumers money to make them pay more for the same." ZTE currently has about 6% of the U.S. phone market, "putting it fourth behind Apple, Samsung and LG." Cheng, whose company's U.S. operations are based in Houston, said that the Rockets sponsorship -- "along with an increase in market share -- helped the company’s brand awareness go" from 1% to 16%. Probably the "best branding moment" of a Warriors game last week that Cheng attended "came during the ZTE-sponsored Season Ticket holder of the game promotion, with the crowd hearing a few details on the combination hotspot/projector awarded to the fan." Its name also "appeared on the inflatable noisemaking sticks handed out to fans." ZTE used the game to "unveil its new tagline -- Tomorrow Never Waits -- and also took part in a drive encouraging fans to donate a new or used smartphone to underprivileged youth in the area" (RECODE.net, 1/2).
