SECURITIES/ AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q


         [X]  QUARTERLY REPORT PURSUANT TO SECTON 13 OR 15(d) OF THE SECURITIES
              EXCHANGE ACT OF 1934

                 For the quarterly period ended June 30, 2003

         [ ]  TRANSITIONAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
              EXCHANGE ACT OF 1934 (No Fee Required)

                           Commission File No. 0-27210




                                  Zunicom, Inc.
              ----------------------------------------------------
                 (Name of Small Business Issuer in its Charter)




              Texas                                            75-2408297
    -------------------------------                  --------------------------
    (State or other jurisdiction of                         (I.R.S. Employer
     incorporation of organization)                       Identification No.)

                           4300 Wiley Post Road, Addison, Texas, 75001
        ----------------------------------------------------------------
                     (Address of principal executive office


                                 (972) 851-5600
                          ----------------------------
                           (Issuer's telephone number)

     Check  whether the issuer has (1) filed all reports  required by Section 12
or 15(d) of the Exchange  Act during the past 12 months,  and 2) been subject to
such filing requirements for the past ninety (90) days. Yes [ X ]  No [   ]

     As of June 30, 2003, 8,403,390 shares of Common Stock were outstanding.













                                       1
<PAGE>





                                      INDEX



                                                                        Page
PART I - Financial Information

Item 1.  Financial Statements

   Consolidated Balance Sheets at June 30, 2003 (unaudited)
   and December 31, 2002..................................................3

   Consolidated Statements of Operations for the three and six
   month periods ended June 30, 2003 and 2002 (unaudited).................5

   Consolidated Statements of Cash Flows for the six month
   periods ended June 30, 2003 and 2002 (unaudited).......................6

   Notes to Consolidated Financial Statements.............................7

Item 2.  Management's Discussion and Analysis or Plan of Operation...... 10

Item 3.  Controls and Procedures.........................................16

PART II - Other Information..............................................17

   Item 1.  Legal Proceedings............................................17

   Item 2.  Changes in Securities........................................17

   Item 3.  Defaults Upon Senior Securities..............................17

   Item 4.  Submission of Matters to a Vote of Securities Holders........17

   Item 5.  Other Information............................................17

   Item 6.  Exhibits and Reports on Form 8-K.............................17

Signature................................................................18













                                       2
<PAGE>



PART  I  -  FINANCIAL  INFORMATION
----------------------------------
Item  1.  Financial  Statements

                         ZUNICOM, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS


                                     ASSETS

                                               (Unaudited)
                                                 June 30,     December 31,
                                                   2003           2002
                                              ------------   -------------
CURRENT ASSETS
  Cash and cash equivalents . . . . . . . .   $    394,685   $     648,415
  Accounts receivable trade, net of
    allowance for doubtful accounts
    of $220,437 (unaudited) and
    $182,235  . . . . . . . . . . . . . . .      6,969,696       6,755,059
    Other . . . . . . . . . . . . . . . . .         90,217         190,611
  Inventories - net of allowance for
    obsolescence of $526,199 (unaudited)
    and $422,710 . . . . . . . . . . . . . .     6,486,728       8,013,727
  Prepaid expenses and other current assets        626,903         525,839
                                              ------------   -------------

      Total current assets. . . . . . . . .     14,568,229      16,133,651
                                              ------------   -------------
PROPERTY AND EQUIPMENT
  Facsimile and business center equipment        3,053,212       3,348,297
  Machinery and equipment . . . . . . . . .        691,282         668,213
  Computer equipment. . . . . . . . . . . .        232,053         227,117
  Furniture and fixtures  . . . . . . . . .        310,572         310,572
  Leasehold improvements. . . . . . . . . .        195,998         195,352
  Vehicles. . . . . . . . . . . . . . . . .        140,676         119,432
                                              ------------   -------------
                                                 4,623,793       4,868,983
  Less accumulated depreciation and
    amortization. . . . . . . . . . . . . .     (2,389,539)     (2,252,382)
                                              ------------   -------------
      Net property and equipment. . . . . .      2,234,254       2,616,601
                                              ------------   -------------

OTHER ASSETS. . . . . . . . . . . . . . . .         94,127          78,228
                                              ------------   -------------
TOTAL ASSETS. . . . . . . . . . . . . . . .   $ 16,896,610   $  18,828,480
                                              ============   =============

            The accompanying footnotes are an integral part of these
                       consolidated financial statements.

                                   -Continued-

                                       3
<PAGE>




                         ZUNICOM, INC. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS - Continued

                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                              (Unaudited)
                                                June 30,     December 31,
                                                 2003            2002
                                            -------------   -------------
CURRENT LIABILITIES
  Line of credit . . . . . . . . . . . .    $   4,425,035   $   5,536,750
  Current portion of long-term debt  . .        1,611,371         516,503
  Accounts payable . . . . . . . . . . .        3,936,332       5,397,510
  Accrued liabilities  . . . . . . . . .        1,299,466         942,971
  Other current liabilities  . . . . . .            9,200           9,200
                                            -------------   -------------
      Total current liabilities. . . . .       11,281,404      12,402,934
                                            -------------   -------------
LONG-TERM DEBT, less current portion . .           52,328       1,518,366
                                            -------------   -------------
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
  Preferred stock - $1.00 par value;
    1,000,000 shares authorized; 115,088
    Class A shares issued and outstanding;
    liquidation preference of $604,212 .          115,088         115,088
  Common stock - $0.01 par value;
    50,000,000 shares authorized; 8,403,390
    shares issued and outstanding. . . .           84,034          84,034
  Additional paid-in capital . . . . . .       14,432,562      14,454,141
  Accumulated deficit  . . . . . . . . .       (9,068,806)     (9,746,083)
                                            -------------   -------------
      Total stockholders' equity . . . .        5,562,878       4,907,180
                                            -------------   -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $  16,896,610   $  18,828,480
                                            =============   =============













            The accompanying footnotes are an integral part of these
                       consolidated financial statements.

                                       4
<PAGE>

                         ZUNICOM, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                  For the Periods Ended June 30, 2003 and 2002
                                   (Unaudited)

<TABLE>

                                         Three Months Ended June 30,   Six Months Ended June 30,
                                          --------------------------   ------------------------
                                               2003         2002            2003         2002
REVENUES                                    ----------   ----------     -----------  -----------
<S>                                        <C>           <C>            <C>          <C>
     Battery and fulfillment revenue.......$13,770,892   $8,746,765     $26,755,923  $14,864,807
     Service revenue.......................    696,035    1,010,053       1,369,791    2,028,749
                                            ----------   ----------      ----------   ----------
                                            14,466,927    9,756,818      28,125,714   16,893,556

COST OF REVENUES
     Cost of goods sold.................... 11,511,573    7,303,495      22,530,164   12,106,525
     Direct servicing costs................    226,707      221,635         376,636      405,417
                                            ----------   ----------      ----------   ----------
                                            11,738,280    7,525,130      22,906,800   12,511,942
                                            ----------    ---------      ----------   ----------
GROSS PROFIT...............................  2,728,647    2,231,688       5,218,914    4,381,614

OPERATING EXPENSES
     Selling, general and administrative...  2,012,549    1,726,276       3,857,781    3,372,289
     Depreciation and amortization of
         property and equipment............    254,678      185,043         490,793      366,927
                                            ----------    ---------      ----------   ----------
                                             2,267,227    1,911,319       4,348,574    3,739,216
                                            ----------    ---------      ----------   ----------
INCOME FROM OPERATIONS                         461,420      320,369         870,340      642,398

OTHER INCOME (EXPENSES)
     Interest income.......................          -          701               -        1,562
     Interest expense......................   (163,541)    (183,490)       (328,509)    (368,353)
     Other, net............................    139,702      (14,060)        135,446      (30,009)
                                            ----------    ---------      ----------   ----------
                                               (23,839)    (196,849)       (193,063)    (396,800)
                                            ----------    ---------      ----------   ----------
INCOME BEFORE PROVISION FOR INCOME TAXES       437,581      123,520         677,277      245,598

PROVISION FOR INCOME TAXES.................          -            -               -            -
                                            ----------    ---------      ----------   ----------
NET INCOME                                 $   437,581   $  123,520     $   677,277  $   245,598
                                            ==========    =========      ==========   ==========
Net income attributable to common
     stockholders                          $   427,223   $  113,160     $   655,698  $   224,017
                                            ==========    =========      ==========   ==========
Basic and diluted net income per share
     attributable to common stockholders   $      0.05   $     0.01     $      0.08  $      0.03
                                            ==========    =========      ==========   ==========
Number of weighted-average shares of
     common stock outstanding (basic
     and diluted).........................   8,403,390    8,403,390       8,403,390    8,403,390
                                            ==========    =========      ==========   ==========
</TABLE>



            The accompanying footnotes are an integral part of these
                       consolidated financial statements.

                                       5
<PAGE>
                        ZUNICOM, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
             For The Six Month Periods Ended June 30, 2003 and 2002
                                   (Unaudited)

                                                           2003         2002
CASH FLOWS FROM OPERATING ACTIVITIES                    ----------   ----------

Net income                                              $  677,277  $   245,598
Adjustments to reconcile net income to net
   cash provided by (used by) operating activities:
     Depreciation of property and equipment.............   490,793      366,927
     Provision for bad debts............................   133,237        9,539
     Provision for obsolete inventory...................   103,500        6,000
     Loss on disposal of equipment......................         -       10,804
     Change in operating assets and liabilities
           Accounts receivable - trade..................  (347,874)  (2,935,205)
           Accounts receivable - other..................   100,394       (4,902)
           Inventories.................................. 1,423,499   (3,211,139)
           Prepaid expenses and other current assets....  (101,064)     330,192
           Other assets.................................   (15,899)     (85,030)
           Accounts payable.............................(1,461,178)   3,343,935
           Accrued liabilities..........................   356,495      996,519
                                                         ---------    ---------
Net cash provided by (used by) operating activities..... 1,359,180     (926,762)
                                                         ---------    ---------
CASH FLOWS FROM INVESTING ACTIVITIES
   Purchases of property and equipment..................   (87,202)    (315,059)
   Purchase of certificate of deposit...................         -       (1,559)
                                                         ---------    ---------
Net cash used in investing activities...................   (87,202)    (316,618)
                                                         ---------    ---------
CASH FLOWS FROM FINANCING ACTIVITIES
   Net activity on line of credit.......................(1,111,715)   1,498,992
   Repayment of long-term debt..........................  (392,414)    (478,020)
   Payment of preferred stock dividends.................   (21,579)     (21,581)
                                                         ---------    ---------
Net cash provided by (used by) financing activities.... (1,525,708)     999,391
                                                         ---------    ---------
NET DECREASE IN CASH AND CASH EQUIVALENTS..............   (253,730)    (243,989)

Cash and cash equivalents at beginning
     of period.........................................    648,415    1,355,153
                                                         ---------    ---------
Cash and cash equivalents at end of period.............$   394,685  $ 1,111,164
                                                         =========    =========
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING
     AND FINANCING ACTIVITIES:

Acquisition of property and equipment
     through capital lease.............................$    21,244  $         -
                                                         =========    =========


            The accompanying footnotes are an integral part of these
                       consolidated financial statements.

                                       6
<PAGE>
                        ZUNICOM, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE A - BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting  principles for interim financial information
and in  accordance  with  the  instructions  to  Form  10-Q  and  Article  10 of
Regulation  S-X.  Accordingly,  they do not include all of the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements.

In the opinion of management,  all adjustments  (consisting of normal  recurring
adjustments) considered necessary for a fair presentation have been included for
the three and six month periods  ended June 30, 2003.  The results for the three
and six month periods ended June 30, 2003 are not necessarily  indicative of the
results  that  may be  expected  for the  year  ended  December  31,  2003.  The
consolidated  financial  statements  included in this  filing  should be read in
conjunction  with the  Company's  consolidated  financial  statements  and notes
thereto  included  in the  Company's  annual  report on form 10-KSB for the year
ended December 31, 2002.

NOTE B - ORGANIZATION

Zunicom,  Inc.,  formerly  Tech  Electro  Industries,  Inc.,  ("Zunicom"  or the
"Company")  was formed on January  10,  1992 as a Texas  corporation.  Effective
October 17, 2002,  Tech Electro  Industries,  Inc.  changed its name to Zunicom,
Inc.  On May 12,  2003,  Zunicom's  subsidiary,  Universal  Battery  Corporation
changed its name to Universal Power Group, Inc. ("Universal"). Universal Battery
Corporation  was formerly known as Computer  Components  Corporation.  Since its
inception  in 1968,  Universal  has evolved  from a  distributor  of  electronic
components  into a battery,  battery  powered  products  and  security  products
distributor  and supplier,  a  third-party  fulfillment  provider,  and a custom
battery assembler. Zunicom's other subsidiary, AlphaNet Hospitality Systems Inc.
("AlphaNet"),  provides  in-room  facsimile and business  center services to the
hotel  industry  for their  business  travelers  through  licensing  agreements.
AlphaNet  generates  revenues from its product line which includes InnFax(R) and
The Office(TM).  InnFax(R) is a patented in-room  facsimile service which offers
guests a  personal  facsimile  number and  e-mail  address  to send and  receive
correspondence during the duration of their stay, as well as facsimile, printing
and  copying  capabilities.  The  Office(TM),  is a full  service,  credit  card
activated business center for business travelers staying at hotels.

NOTE C - STOCK BASED COMPENSATION

The Company  accounts for  stock-based  employee  compensation  arrangements  in
accordance  with provisions of Accounting  Principles  Board ("APB") Opinion No.
25,  "Accounting  for Stock  Issued to  Employees."  Under APB  Opinion  No. 25,
compensation  expense for employees is based on the excess,  if any, on the date
of grant, between the fair value of the Company's stock over the exercise price.
The Company did not record compensation expense related to the issuance of stock
options during the three and six month periods ended June 30, 2003 and 2002. Had
the Company  determined  compensation  based on the fair value at the grant date
for  its  stock  options  under  SFAS  No.  123,   "Accounting  for  Stock-Based
Compensation,"  as  amended  by  SFAS  No.  148,   "Accounting  for  Stock-Based

                                       7
<PAGE>

NOTE C - STOCK BASED COMPENSATION (continued)

Compensation-Transition  and Disclosure-an amendment of FASB Statement No. 123,"
net income  attributable to common  stockholders  and income per share would not
have  significantly  differed  from reported net income  attributable  to common
stockholders.   The  Company   accounts   for  equity   instruments   issued  to
non-employees  in accordance  with the  provisions of SFAS No. 123 as amended by
SFAS  No.  148  and  Emerging  Issues  Task  Force  ("EITF")  Issue  No.  96-18,
"Accounting for Equity  Instruments  That Are Issued to Other Than Employees for
Acquiring,  or in Conjunction with Selling, Goods or Services." All transactions
in which goods or services  are the  consideration  received for the issuance of
equity   instruments   are  accounted  for  based  on  the  fair  value  of  the
consideration  received  or the fair  value  of the  equity  instrument  issued,
whichever is more reliably measurable. The measurement date of the fair value of
the  equity  instrument  issued  is  the  earlier  of  the  date  on  which  the
counterparty's  performance is complete or the date on which it is probable that
performance will occur.

NOTE D - NET INCOME PER SHARE

Basic net income per share is computed by dividing net income,  decreased by the
preferred  stock  dividends  of $21,579 and  $21,581  for the six month  periods
ending  June 30,  2003 and 2002,  respectively,  and $10,358 and $10,360 for the
three month periods ending June 30, 2003 and 2002, respectively, by the weighted
average number of common shares  outstanding for the period.  Diluted net income
per share is computed by dividing net income  decreased by the  preferred  stock
dividends  by the  weighted  average  number of common  shares and common  stock
equivalents  outstanding  for the  period.  At  June  30,  2003  and  2002,  all
outstanding  stock options and warrants have  exercise  prices  greater than the
current fair value of the underlying stock and therefore,  have no affect on the
income per share computation.

NOTE E - LINE OF CREDIT

On March 27,  2002,  Universal  obtained  a  $12,000,000  line of credit  with a
financing  company,  payable on demand,  with interest  payable monthly at prime
plus  1.25%,  maturing  March  2005.  The line of credit is secured by  accounts
receivable,  inventories and equipment of Universal.  The line's availability is
based  on a  borrowing  formula  which  allows  for  borrowings  equal to 85% of
Universal's  eligible accounts  receivable and percentage of eligible inventory.
On June 30,  2003,  $4,425,035  of the line of  credit  was  outstanding,  while
$668,041 remained available for borrowings under the line of credit.

NOTE F - NOTES PAYABLE - RELATED PARTY

AlphaNet has two notes payable to related party financing companies. One note in
the original  principal  amount of $1,525,000  is payable to Appel  Investments,
Inc. of which Kim Yeow Tan an officer, director and shareholder. Kim Yeow Tan is
William Tan's brother.  As of June 30, 2003, AlphaNet owes $986,308 in principal
on this note. The second note in the original  principal amount of $1,000,000 is
payable to AHS Funding LLC of which Jenny Jechart, a shareholder of the Company,
is the  principal  shareholder.  As of June 30, 2003,  AlphaNet owes $440,400 in
principal  on this  note.  These  notes,  which  have  interest  rates of 20.5%,
originally matured on October 21, 2001 and have been extended to March 27, 2004.


                                       8
<PAGE>
NOTE F - NOTES PAYABLE - RELATED PARTY (continued)

These notes are secured by a first lien on all AlphaNet assets and a second lien
on all AlphaNet stock owned by Zunicom.

Zunicom has a note payable to a related party  financing  company.  The original
principal  amount of $500,000 is payable to Caspic  International,  Inc. William
Tan,  the  President,  CEO and a  significant  shareholder  of Zunicom is also a
director  and  shareholder  of  Caspic  International, Inc. As of June 30, 2003,
Zunicom owes $164,000 in principal on this note.  This note has an interest rate
of 12%,  originally  matured on May 25, 2000 and has  been extended to September
10, 2003. The loan is secured by a pledge of all outstanding  shares of AlphaNet
stock owned by Zunicom.

NOTE G - SEGMENTS

The battery and third party fulfillment sales segment  represents the operations
of Universal,  which includes the stocking and sales of battery, battery related
products, passive electronic components, security and security-related products.
The  hospitality   service  operations  of  AlphaNet  provides  private  in-room
facsimile and office business center for business travelers. These segments were
identified  based on the  different  nature of the services,  location,  and, in
general, the type of customers for those services.

A summary of the segment financial  information  reported to the chief operating
decision maker is as follows:

<TABLE>
                                                  Six Months Ended June 30, 2003
                                     -------------------------------------------------------
                                                      Battery & 3rd
                                     Facsimile &      Party Fulfillment
                                     Business Center  Sales         Adjustments Consolidated
                                     ---------------  ------------  ----------  ------------
<S>                                  <C>              <C>           <C>         <C>
Revenue                              $ 1,369,791      $ 26,755,923  $       -   $ 28,125,714
Depreciation and amortization            432,030            55,796      2,967        490,793
Segment profit (loss)                   (459,585)          709,179    427,683        677,277
Segment assets                         2,552,169        14,312,542     31,899     16,896,610
Capital expenditures by segment           64,133            44,313          -        108,446

                                                  Six Months Ended June 30, 2002
                                     -------------------------------------------------------
                                                       Battery & 3rd
                                     Facsimile &       Party Fulfillment
                                     Business Center   Sales        Adjustments Consolidated
                                     ---------------  ------------  ----------  ------------
Revenue                              $ 2,028,749      $ 14,863,462  $   1,345   $ 16,893,556
Depreciation and amortization            308,623            55,022      3,282        366,927
Segment profit (loss)                   (318,238)          281,096    282,740        245,598
Segment assets                         3,796,204        13,903,212     69,099     17,768,515
Capital expenditures by segment          169,752           145,307          -        315,059
</TABLE>

The adjustments  represent  depreciation and  amortization  related to corporate
assets,  corporate  expenses,  and corporate  capital  expenditures to reconcile
segment balances to consolidated amounts.





                                       9
<PAGE>
NOTE H - CONCENTRATIONS

Through  June 30,  2003,  a  significant  portion of  Universal's  business  was
Conducted with one major customer, which represented  approximately 56% and 54%,
respectively,  of  Universal's  revenues for the three and six months ended June
30, 2003. At June 30, 2003 Universal had aggregate accounts receivable from this
customer in the amount of $2,796,978.

NOTE I - INCOME TAXES

Zunicom  has  generated  substantial  tax loss  carry-forwards  that  created  a
significant  deferred tax asset at June 30,  2003.  Zunicom has not assigned any
value to such asset due to the  uncertainty  of  realization  of the  value.  In
assessing the reliability of deferred tax assets,  management  considers whether
it is more likely than not that all or some  portion of the  deferred tax assets
will be realized.  The ultimate  realization of deferred tax assets is dependent
upon the generation of future taxable  income.  Management  considers  projected
future taxable income and tax planning strategies in making this assessment.  At
June 30, 2003,  Zunicom had net operating  loss  carry-forwards  for federal tax
purposes of  approximately  $11 million,  which are  available to offset  future
taxable income,  if any, and begin to expire in 2011,  subject to limitations of
Section 382 of the Internal Revenue Code.



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

The  following  discussion  and  analysis  should  be read in  conjunction  with
Zunicom's Consolidated Financial Statements and notes thereto included elsewhere
in this Form 10-Q. Except for the historical  information  contained herein, the
discussion in this Form 10-Q contains  certain forward  looking  statements that
involve  risks  and  uncertainties,  such  as  statements  of  Zunicom's  plans,
objectives,  expectations and intentions. The cautionary statements made in this
Form 10-Q  should be read as being  applicable  to all  related  forward-looking
statements  wherever they appear in this Form 10-Q.  These  statements  include,
without limitation,  statements  concerning the potential operations and results
of the Company described below. Zunicom's actual results could differ materially
from these  discussed  here.  Factors  that could  cause or  contribute  to such
differences include,  without limitation,  those factors discussed herein and in
Zunicom's Annual Report on Form 10-KSB for the year ended December 31, 2002.

RECENT DEVELOPMENTS

On March 5, 2003 the  maturity  date of  Zunicom's  $500,000  note  payable to a
related  party was  extended  to  September  10,  2003.  At July 30,  2003,  the
principal balance of this note is $84,000.  Additionally, on March 27, 2003, the
maturity  dates  on  AlphaNet's   notes  payable  to  related  parties  totaling
$1,475,854  at  December  31,  2002 were extended to March  27, 2004 and have an
outstanding balance of $1,426,708 at June 30, 2003.

On May 12, 2003,  Universal  Battery  Corporation  changed its name to Universal
Power Group, Inc. to reflect its business diversification to include the sale of
batteries,  battery-related  and battery-powered  products,  specifically in the
security,  medical and  consumer  markets,  and its new  business in the sale of
third-party fulfillment and logistics services.


                                       10
<PAGE>
On  June  24,  2003,  AlphaNet  introduced  at  the  2003  Hospitality  Industry
Technology   Exposition  and  Conference  (HITEC),   two  new  productivity  and
connectivity   tools  for  hotels  and  their  business  traveler  guests,   the
"WaveLan(TM)"   and  the  "LapTop   Connect(TM)".   WaveLan(TM)  is  a  wireless
connectivity  product that  provides hotel guests  with  public  area,  wireless
access to the Internet.  With WaveLan(TM) the hotel can offer wireless  Internet
access to their guests in any number of  locations  including  lobbies,  meeting
rooms,  lounges,  bars and  restaurants.  As a credit  card  activated  service,
WaveLan(TM) has the potential to become a  revenue-generating  business tool for
the hotel.  LapTop  Connect(TM)  allows  hotel guests or visitors the ability to
connect their laptop  computers to  high-speed  Internet  access points  located
within the property.  LapTop Connect(TM) also offers a hotspot for users wishing
to access the Internet  through the wireless  network  feature of their  Laptop.
Laptop  Connect(TM)  and WaveLan(TM) are to be installed at three confirmed Beta
sites  in August  2003.  Stand-alone  WaveLan(TM)  will  also be installed in an
additional location in October 2003.

RESULTS OF OPERATIONS

Currently, the operations of Zunicom are conducted through its two subsidiaries,
Universal and AlphaNet.


THREE MONTHS ENDED JUNE 30, 2003 COMPARED TO THREE MONTHS ENDED JUNE 30, 2002.

Revenues

For the three  month  period  ended  June 30,  2003,  Zunicom  had  consolidated
revenues of $14,466,927 compared to $9,756,818 for the similar period ended June
30, 2002, an increase of $4,710,109 (48.3%).

Universal, AlphaNet and Zunicom had revenues of $13,770,892, $696,035 and $0 for
the three month period ended June 30, 2002,  respectively,  compared to revenues
of $8,746,765, $1,010,053 and $0 for the similar period in 2002, respectively.

Universal's  increase in revenues of  $5,024,127  is primarily  attributable  to
revenues  from  a  third  party  fulfillment  customer,  Brinks  Home  Security,
Universal's  largest  customer,  while  sales of  battery,  battery  related and
battery powered products remained  consistent in the primary markets serviced by
Universal.  Specifically,  Brinks Home Security sales totaled $7,705,410 for the
three  month  period  ended June 30,  2003 and were  $2,872,653  for the similar
period in 2002.

AlphaNet's  decrease in revenues of $314,018 is  attributable  to the  continued
decline in facsimile  usage by hotel guests,  service fees charged to hotels for
renewal of  expired  contracts,  as well as  declining  installations  of InnFax
machines.  However,  AlphaNet's  decrease in facsimile revenues of approximately
$322,627 has been partially  offset by the increase usage and  installations  of
"The Office" product in hotels of $27,948.

Cost of Revenues

For the three month period ended June 30, 2003,  Zunicom's  consolidated cost of
revenues increased to $11,738,280 compared to cost of revenues of $7,525,130 for
the similar period in 2002, an increase of $4,213,150 (56.0%).


                                       11
<PAGE>
Universal's and AlphaNet's cost of revenues totaled $11,511,573 and $226,707 for
the three month period ended June 30, 2003,  compared to $7,303,495 and $221,635
for the similar period in 2002,  respectively.  Increased  revenues at Universal
during the three month period ended June 30, 2003 compared to the similar period
in 2002 directly resulted in an increase in the cost of revenues during the same
three  month  period in 2003  compared to the  similar  period in 2002.  Cost of
revenues as a percentage of revenues for  Universal  remained  consistent  83.6%
compared to 83.5% for the  similar  period in 2002.  High costs of revenues  are
attributable  to the low margins earned on third party  fulfillment  services to
Brinks Home Security.  Universal  gross margins for the three month period ended
June  30,  2003  from  fulfillment   services  for  Brinks  Home  Security  were
approximately  10% compared to average  gross margins of 20% from sales to other
customers.

AlphaNet's direct servicing costs as a percentage of service revenues  increased
to 32.6% for the three month period  ending June 30, 2003  compared to 21.9% for
the same period in 2002.  The  increase is primarily  attributable  to the fewer
number of  facsimile  machines  installed  at hotels,  a decrease  in  recurring
facsimile services, and increased reserves for facsimile inventories as a result
of continuing decline in service revenues.

Operating Expenses

For the three month period ended June 30, 2003, Zunicom's consolidated operating
expenses, consisting of selling, general and administrative and depreciation and
amortization  expenses  increased to $2,267,227  compared to $1,911,319  for the
similar period in 2002, an increase of $355,908.

Universal's,  AlphaNet's,  and  Zunicom's  selling,  general and  administrative
expenses totaled  $1,620,566,  $337,293 and $54,689,  respectively for the three
month period ended June 30, 2003, compared to $1,145,917, $465,583 and $114,776,
respectively for the similar period in 2002.

The increase in Universal's selling, general and administrative expenses in 2003
is  primarily  due to  increases  in employee  bonuses of  $110,059,  personnel,
payroll  taxes,  group health  insurance  costs of $105,518,  property  taxes of
$88,732, rent and utilities of $44,451 and legal of $23,548. These increases are
primarily  related to the additional  revenues  earned in  association  with the
Brinks contract.

The  decrease in  AlphaNet's  selling,  general and  administrative  expenses is
largely  attributable  to  decreased  in wages,  payroll  taxes and group health
insurance  of  $107,977,  professional  fees of $16,319,  marketing  expenses of
$17,858 and rent of $10,543 compared to the same period in 2002.

The decrease in Zunicom's selling, general and administrative is attributable to
decreases  in wages of  $19,896,  accounting  fees of $18,804 and moving fees of
$13,272 compared to the same period in 2002.

For  the  three  month  period  ended  June  30,  2003,  Zunicom's  consolidated
depreciation expense was $254,678 compared to $185,043 for the similar period in
2002,  an increase of  $69,635.  The  increase  is  primarily  due to  increased
property and equipment at June 30, 2003 compared to June 30, 2002.




                                       12
<PAGE>
Interest Expense

Zunicom's  consolidated interest expense was $163,541 for the three month period
ended June 30,  2003  compared to $183,490  for the  similar  period in 2002,  a
decrease of $19,949.  The decrease in interest  expense is  attributable  to the
decreased  interest  rate under the  Universal  line of credit  during the three
months  ended  June 30,  2003  compared  to the same  period  in 2002 as well as
principal  payments  made by  AlphaNet  on  outstanding  debt.  The  decrease in
AlphaNet  notes  payable  at  interest  rates of 20.5% is  partially  offset  by
increased  borrowings under the Universal line of credit,  which has an interest
rate of prime plus 1.25% (5.5% at June 30, 2003).

Other Income(Expense)

Zunicom's  consolidated  other  income was  $139,702  for the three month period
ended June 30, 2003  compared to other expense of $14,060 for the same period in
2002.  AlphaNet  sold a patent for net  proceeds  of  $141,251  during the three
months  ended June 30,  2003 while  maintaining  the right to use it. The patent
sale is included in other income for the three months ended June 30, 2003.


SIX MONTHS ENDED JUNE 30, 2003 COMPARED TO SIX MONTHS ENDED JUNE 30, 2002.

Revenues

For  the six  month  period  ended  June  30,  2002,  Zunicom  had  revenues  of
$28,125,714  compared to $16,893,556 for the similar period in 2002, an increase
of $11,232,158 (66.5%).

Universal,  AlphaNet and Zunicom had revenues of $26,755,923, $1,369,791, and $0
respectively  for the six months  ended June 30,  2003  compared  to revenues of
$14,863,462,  $2,028,749,  and $1,345  respectively,  for the similar  period in
2002.

Universal's  increase in revenues of  $11,892,461 is primarily  attributable  to
revenues  from  a  third  party  fulfillment  customer,  Brinks  Home  Security,
Universal's  largest  customer,  while  sales of  battery,  battery  related and
battery powered products remained  consistent in the primary markets serviced by
Universal.  Specifically, Brinks Home Security sales totaled $14,469,685 for the
six month period ended June 30, 2003 and were  $2,872,653 for the similar period
in 2002.

AlphaNet's  decrease in revenues of $658,958 is  attributable  to the  continued
decline in facsimile  usage by hotel guests,  service fees charged to hotels for
renewal of  expired  contracts,  as well as  declining  installations  of InnFax
machines.  However,  AlphaNet's  decrease in facsimile revenues of approximately
$730,558 has been partially  offset by the increase usage and  installations  of
"The Office" product in hotels of $112,396.

Cost of Revenues

For the six  month  period  ended  June 30,  2003,  Zunicom's  cost of  revenues
increased to $22,906,800 compared to $12,511,942 for the similar period in 2002,
an increase of $10,394,858 (83.1%).



                                       13
<PAGE>
Universal's and AlphaNet's cost of revenues totaled $22,530,164 and $376,636 for
the six month period ended June 30, 2003,  compared to $12,106,525  and $405,417
the similar period in 2002, respectively. Increased revenues at Universal during
the six month period ended June 30, 2003 compared to the similar period in 2002,
directly  resulted in an  increase  in the cost of revenues  during the same six
month  period  compared  to the  similar  period in 2002.  Cost of revenues as a
percentage  of revenues for Universal  increased to 84.2%  compared to 81.4% for
the similar period in 2002. The increase in cost of revenues is  attributable to
the low  margins  earned on third  party  fulfillment  services  to Brinks  Home
Security.  Universal  gross margins for the six month period ended June 30, 2003
from  fulfillment  services  for Brinks Home  Security  were  approximately  10%
compared to average gross margins of 22% from sales to other customers.

AlphaNet's direct servicing costs as a percentage of service revenues  increased
to 27.5%  compared to 20.0% for the six month  periods  ending June 30, 2003 and
2002,  respectively.  The increase is primarily attributable to the fewer number
of facsimile  machines  installed at hotels,  a decrease in recurring  facsimile
services,  and  increased  reserves  for  facsimile  inventories  as a result of
continuing decline in service revenues.

Operating Expenses

For the six month  period  ended June 30, 2003,  Zunicom's  operating  expenses,
consisting  of  selling,   general  and   administrative  and  depreciation  and
amortization  expenses  increased to $4,348,574  compared to $3,739,216  for the
similar period in 2002, an increase of $609,358.

Universal's,  AlphaNet's,  and  Zunicom's  selling,  general and  administrative
expenses  totaled  $3,060,706,  $660,059 and $137,016,  respectively for the six
month  period  ending June 30,  2002,  compared to  $2,125,350,  $1,028,620  and
$218,319, respectively for the similar period in 2002.

The increase in Universal's selling, general and administrative expenses in 2003
is due to  increases  in payroll,  taxes,  and group  health  insurance  related
expenses of $370,017, employee bonuses of $156,059,  consulting fees of $56,000,
property  taxes of $96,741,  property and  liability  insurance of $35,370,  bad
debts of  $18,583  and rent and  utilities  of  $104,117.  These  increases  are
primarily  related to the additional  costs associated with the Brinks contract.

The  decrease in  AlphaNet's  selling,  general and  administrative  expenses is
primary  attributable to decreased  marketing  expenses and rent of $122,561 and
decreased wages and sales commissions of $219,372.  Due to management  reduction
in personnel and closing of the New Jersey office.

Zunicom  experienced  decreases  in wages of $93,270,  moving  costs of $13,272,
meals,  entertainment  and travel of $18,899 offset with an increase of employee
bonuses of $36,017 for the six months ended June 30, 2003.

For the six month  period  ended June 30,  2003,  Zunicom  incurred  $490,793 in
depreciation  and  amortization  expense  compared to  $366,927  for the similar
period in 2002,  an increase of  $123,866.  The  increase  is  primarily  due to
increased property and equipment at June 30, 2003 compared to June 30, 2002.





                                       14
<PAGE>
Interest Expense

For the six month period June 30, 2003,  Zunicom  incurred  $328,509 in interest
expense  compared to $368,353  during the similar  period in 2002, a decrease of
$39,844.  The  decrease in interest  expense is  attributable  to the  decreased
interest  rate under the  Universal  line of credit  during the six months ended
June 30, 2003 compared to the same period in 2002 as well as principal  payments
made by AlphaNet on outstanding  debt. The decrease in AlphaNet notes payable at
interest rates of 20.5% is partially  offset by increased  borrowings  under the
Universal  line of credit,  which has an interest rate of prime plus 1.25% (5.5%
at June 30, 2003).

Other Income(Expense)

Zunicom's  consolidated other income was $135,446 for the six month period ended
June 30, 2003  compared to other expense of $30,009 for the same period in 2002.
AlphaNet sold a patent for net proceeds of $141,251  during the six months ended
June 30, 2003 while maintaining the right to use it. The patent sale is included
in other income for the six months ended June 30, 2003.

Liquidity

Zunicom had cash and cash  equivalents on a  consolidated  basis of $394,686 and
$1,111,164 at June 30, 2003 and 2002, respectively.

Net cash provided by operations  was  $1,359,180  for the six month period ended
June 30, 2003  compared to cash used by  operations  of $926,762 for the similar
period in 2002. The cash provided by operating  activities in 2003 was primarily
related to  increases  in accounts  receivable  and prepaid  expenses  and other
current  assets of $347,874 and $101,064,  respectively,  a decrease in accounts
receivable  other and  inventories  of $100,394  and  $1,423,499,  respectively,
offset  by a net  decrease  in  accounts  payable  and  accrued  liabilities  of
$1,104,683. These changes were primarily related to Universal's  sales to Brinks
Home  Security.  The cash used by  operating  activities  in 2002 was  primarily
related to increases in accounts  receivable  and  inventories of $2,935,205 and
$3,211,139,  respectively, offset by an increase in accounts payable and accrued
liabilities of $4,340,454  and a decrease in prepaid  expenses and other current
assets of $330,192.

Net cash used by  investing  activities  for the six month period ended June 30,
2003,  was $87,202  compared to $316,618 for the similar  period in 2002.  These
amounts primarily resulted from purchases of property and equipment.

Net cash used by  financing  activities  for the six month period ended June 30,
2003 was $1,525,708 compared to cash provided of $999,391 for the similar period
in 2002. The net cash used by financing activities for the six months ended June
30, 2003 was comprised of net  repayments  on the line of credit of  $1,111,715,
repayment of long-term debt of $392,414 and payment of preferred stock dividends
of $21,579.  The net cash  provided by financing  activities  for the six months
ended June 30, 2002 was  comprised  of net  borrowings  on the line of credit of
$1,498,992,  offset by repayment  of  long-term  debt of $478,020 and payment of
preferred stock dividends of $21,581.





                                       15
<PAGE>
Universal has a  $12,000,000  revolving  line of credit with a finance  company,
payable on demand with interest  payable  monthly at prime plus 1.25%,  maturing
March 27,  2005.  The line of  credit is  secured  by the  accounts  receivable,
inventories  and equipment of Universal.  The line's  availability is based on a
borrowing  formula  which  allows  for  borrowings  equal to 85% of  Universal's
eligible  accounts  receivable  plus the lesser of  $3,000,000 or 85% of the net
orderly liquidation value of Universal's eligible inventory and 55% of the lower
of cost or  market of  Universal's  eligible  inventory.  This line of credit is
guaranteed  by Zunicom.  On June 30, 2003,  $4,425,035 of the line of credit was
outstanding,  while $668,041 remained  available for borrowing under the line of
credit.

At June 30,  2001,  AlphaNet  had notes  payable  to  financing  companies  with
balances of $2,205,200.  One note in the original principal amount of $1,525,000
is  payable  to Appel  Investments,  Inc.,  a  company  in which Kim Yeow Tan an
officer, director and shareholder.  Kim Yeow Tan is William Tan's brother. As of
June 30, 2003,  AlphaNet owes $986,308 in principal on this note. The other note
in the original  principal amount of $1,000,000 is payable to AHS Funding LLC, a
company in which Jenny Jechart,  a shareholder of the Company,  is the principal
shareholder  and  director.  As of June 30,  2003,  AlphaNet  owes  $440,400  in
principal  on this note.  These  notes,  which have an  interest  rate of 20.5%,
originally  matured on October  21, 2001 and were  extended  to March 27,  2004.
These notes are secured by a first lien on all AlphaNet assets and a second lien
on all AlphaNet stock owned by Zunicom. As provided for in the Universal line of
credit  agreement  discussed in the preceding  paragraph,  Universal  may, under
certain  conditions,  borrow  under  the line to  advance  funds to its  parent,
Zunicom, to pay this indebtedness of AlphaNet.  Assuming borrowing  availability
and certain fixed charge coverage ratio tests are met,  Universal may borrow for
this  purpose  up to  50%  of its  quarterly  net  income  until  such  AlphaNet
indebtedness  is paid. The loan agreements  between  AlphaNet and said financing
companies  have been amended to extend the maturity  dates of the notes to March
27, 2004 in consideration of the repayment provisions discussed above.

Zunicom has a note payable to a related party  financing  company.  The original
principal  amount of $500,000 is payable to Caspic  International,  Inc. William
Tan,  the  President,  CEO and a  significant  shareholder  of Zunicom is also a
director  and  shareholder  of Caspic  International,  Inc. As of June 30, 2003,
Zunicom owes $164,000 in principal on this note.  This note has an interest rate
of 12%,  originally  matured on May 25, 2000 and have been extended to September
10, 2003. The loan is secured by a pledge of all outstanding  shares of AlphaNet
stock owned by Zunicom.

Zunicom  is  seeking  alternative  sources  of  financing to repay the Appel and
AHS Funding notes  payable.  These lenders have not indicated  whether they will
refinance these loans. We have applied for loans from traditional  lenders,  but
to date have been unable to secure  acceptable loan terms or terms with which we
can comply.  To  date, we have been  unsuccessful  in securing  any  alternative
financing.

Zunicom  believes that cash provided by its operations and cash available  under
the Universal line of credit will be sufficient to meets its  operational  needs
over the next year.  However, it will not be sufficient to retire the said Appel
and AHS Funding indebtedness.





                                       16
<PAGE>
INTERNATIONAL CURRENCY FLUCTUATION

Since the majority of goods that Universal  purchases are from Asia, it has been
subject, like its competitors,  to international  currency fluctuation since the
Company's  inception.  The  management  of  Universal  does not believe that the
fluctuation in currency presents a serious threat to its operations.

ITEM 3.  CONTROLS AND PROCEDURES

Within 90 days prior to the date of this report,  we carried out an  evaluation,
under the  supervision  and with the  participation  of our principal  executive
officer and principal  financial officer, of the effectiveness of the design and
operation of our disclosure  controls and procedures.  Based on this evaluation,
our principal  executive officer and principal  financial officer concluded that
our disclosure  controls and procedures are effective in timely alerting them to
material  information  required to be included in our periodic  SEC reports.  It
should be noted that the design of any system of  controls is based in part upon
certain  assumptions about the likelihood of future events,  and there can be no
assurance  that any design will succeed in achieving  its stated goals under all
potential future conditions, regardless of how remote.

In addition,  there have been no significant changes in our internal controls or
in other factors that could  significantly  affect those controls  subsequent to
the date of their last evaluation.


PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

None.


Item 2. Changes in Securities.

        None.

Item 3. Defaults Upon Senior Securities.

        None.

Item 4. Submission of Matters to a Vote of Securities Holders.

        None.

Item 5. Other Information.

        None.

Item 6. Exhibits and Reports on Form 8-K.

a) Exhibits

     31.1 Certification of Chief Executive Officer Pursuant To 18 U.S.C. Section
     1350, As Adopted Pursuant To Section 302 Of The Sarbanes-Oxley Act of 2002


                                       17

<PAGE>
     31.2 Certification of Chief Financial Officer Pursuant To 18 U.S.C. Section
     1350, As Adopted Pursuant To Section 302 Of The Sarbanes-Oxley Act of 2002

     32.1 Certification of Chief Executive Officer Pursuant To 18 U.S.C. Section
     1350, As Adopted Pursuant To Section 906 Of The Sarbanes-Oxley Act of 2002

     32.2 Certification of Chief Financial Officer Pursuant To 18 U.S.C. Section
     1350, As Adopted Pursuant To Section 906 Of The Sarbanes-Oxley Act of 2002

b) Reports on Form 8-K.

     None.









                                    Signature
                                    ---------

     Pursuant  to the  requirements  of  Section  13 or 15(d) of the  Securities
Exchange Act of 1934, as amended, the registrant caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.


                                       Zunicom, Inc.
                                       -----------------------------


Date: August 13, 2003                  /s/Julie Sansom-Reese
                                       --------------------------------
                                       Chief Financial Officer





















                                       18