ZTE is looking to launch a smartwatch in early 2014 in efforts to compete with similar ones developed by Google, Samsung, Sony, Qualcomm and Adidas.
ZTE executive vice-president He Shiyou told the Financial Times that ZTE has been researching wearable technology and that it plans to release smartwatches "as early as the first quarter."
The Chinese firm is planning investments in the research and development of wearable’ technology next year.
ZTE is also on the hunt for more acquisitions in efforts to boost its share in the smartphone market, which it claims to be ‘fiercely competitive’.
The company said it would use sponsorships and advertising.to set up an improved brand to western phone consumers.
"The next three years will be critical for ZTE’s devices business," he added.
"There is a window of opportunity to push ZTE into the top three in terms of market share."
ZTE is also planning to launch phones powered by Microsoft’s Windows platform after the company finishes buying Nokia.
