I don&#x27;t think you actually read that book. Disruptive innovation is moving a technology designed for one market, possibly a new one, into another existing market. Existing market participants focus on &#x27;sustaining&#x27; innovations like  reducing costs and inventing more expensive products. In today&#x27;s environment, think using ARM processors, intentionally designed for low power draw in mobile phones, into laptops, desktops and eventually servers.<p>ZTE&#x27;s success is just price differentiation within an existing market. Their &#x27;innovation&#x27; is selling phone technology from 2 years ago at a discount. I don&#x27;t think that even counts as a sustaining innovation, and the article notes that sales doubled but profits growing only 4 percent-- this implies huge cuts to profit margins. The same article also notes that this &#x27;reduced margins&#x27; strategy might be subsidized by Chinese security interests.