According to recent research from our Wireless Device Strategies (WDS) service, ZTE captured 5 percent share of the global mobile phone market during the second quarter of 2012. ZTE remains the fourth largest cellphone brand on the planet. The vendor, based in China, has grown relentlessly in recent years by selling cost-competitive, operator-friendly handsets to 2G prepaid subscribers in Asia, Africa and elsewhere. However, we estimate ZTE's global cellphone share has recently dipped by almost a point over the past year. We believe the firm's profitability is less strong than it once was. What is causing the pain? Well, there are at least three reasons: first, local Chinese rivals, such as Lenovo, have massively upped their game in the Asia region this year. Second, the global CDMA market, in which ZTE is a major player, has plateaued. And third, ZTE's impact on the 3G / 4G handset category is still work-in-progress. More analysis for ZTE and others can be downloaded by clients here.