UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                          WASHINGTON, State D.C. 20549

                                    FORM 10-Q

           |X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                  For the nine month period ended September 30, 2010

                                       OR

          |_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

           For the transition period from              to
                                          ------------    ------------

                         Commission file number: 0-27210



                                  Zunicom, Inc.
              ----------------------------------------------------
             (Exact name of registrant as specified in its charter)

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

  4315 West Lovers Lane, Dallas, Texas                       75209
(Address of principal executive offices)                  (Zip Code)

                                 (214) 352-8674
              (Registrant's telephone number, including area code)

                                      None
(Former name,former address and former fiscal year,if changed since last report)

           Securities registered pursuant to Section 12(b) of the Act:

                                      None

           Securities registered pursuant to Section 12(g) of the Act:
                          Common Stock, $0.01 Par Value
                          -----------------------------
                                (Title of Class)

                    Class A Preferred Stock, $1.00 Par Value
                    ----------------------------------------
                                (Title of Class)

          Units, consisting of one (1) share of Common Stock and one (1)
                        share of Class A Preferred Stock
               --------------------------------------------------
                                (Title of Class)

                                       1
<PAGE>
     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.
                                                             Yes [X] No [ ]

     Indicate by check mark whether the registrant is a large accelerated filer,
an accelerated  filer, a non-accelerated  filer, or a smaller reporting company.
See definitions of "large  accelerated filer,  "accelerated  filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ]                      Accelerated  filer [ ]
Non-accelerated  filer  [ ]                      Smaller reporting company [X]
  (Do not check if a smaller reporting company)

     Indicate  by check mark  whether  the  registrant  is a shell  company  (as
defined in Rule 12b-2 of the Exchange Act).                Yes [ ] No [X]

     As of October 31, 2010, 9,733,527 shares of Common Stock were outstanding.


                       DOCUMENTS INCORPORATED BY REFERENCE

                                      None
































                                        2

<PAGE>
                                  Zunicom, Inc.
                                      INDEX

                                                                      Page
                                                                      ----
PART I - Financial Information

Item 1.  Financial Statements

Unaudited Consolidated Balance Sheet at September 30, 2010
and Consolidated Balance Sheet at December 31, 2009. . . . . . . . . . 4

Unaudited Consolidated Statements of Operations for the
Three and nine months ended September 30, 2010 and 2009 . . . .. . . . 6

Unaudited Consolidated Statements of Cash Flows for the nine months
ended September 30, 2010 and 2009. . . . . . . . . . . . . . . . . . . 9

Notes to Unaudited Consolidated Financial Statements . . . . . . . . .10

Item 2.  Management's Discussion and Analysis of Financial
Condition and Results of Operations. . . . . . . . . . . . . . . . .  16

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.  20

Item 4.  Controls and Procedures. . . . . . . . . . . . . . . . . .   20


PART II - Other Information

Item 1.  Legal Proceedings . . . . . . . . . . . . . . . . . . . . .  21

Item 6.  Exhibits. . . . . . . . . . . . . . . . . . . . . . . . . .  21

Signature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  23

Certifications




















                                        3
<PAGE>
PART  I  -  FINANCIAL  INFORMATION
----------------------------------
Item  1.  Financial  Statements


                                  ZUNICOM, INC.
                           CONSOLIDATED BALANCE SHEETS

                                     ASSETS


                                                    September 30,  December 31,
                                                         2010          2009
                                                     (unaudited)
                                                    ------------- -------------
CURRENT ASSETS
 Cash and cash equivalents                          $  4,479,130  $  5,680,943
 Accounts receivable - trade                              66,560         7,723
 Inventories - finished goods                                  -         6,224
 Prepaid expenses and other current assets                45,560        35,084
                                                    ------------  ------------
    Total current assets                               4,591,250     5,729,974
                                                    ------------  ------------
PROPERTY AND EQUIPMENT
 Business center equipment                                     -       329,925
 Machinery and equipment                                       -       448,234
 Computer equipment                                            -       149,220
 Furniture and fixtures                                   10,000        30,097
 Leasehold improvements                                        -        12,377
                                                    ------------  ------------
    Total property and equipment                          10,000       969,853

 Less accumulated depreciation and amortization             (833)     (949,992)
                                                    ------------  ------------
    Net property and equipment                             9,167        19,861
                                                    ------------  ------------

INTANGIBLE ASSETS, NET                                   436,250            --

INVESTMENT IN UNCONSOLIDATED INVESTEE                  4,239,794     3,345,697
                                                    ------------  ------------

TOTAL ASSETS                                        $  9,276,461  $  9,095,532
                                                    ============  ============










                                   (Continued)


                                        4

<PAGE>
                                  ZUNICOM, INC.
                     CONSOLIDATED BALANCE SHEETS - Continued

                      LIABILITIES AND STOCKHOLDERS' EQUITY


                                                    September 30,  December 31,
                                                         2010          2009
                                                     (unaudited)
                                                    ------------- -------------
CURRENT LIABILITIES
 Accounts payable                                   $    325,921  $    275,196
 Accrued liabilities                                      32,971       114,989
 Customer deposits                                        22,553            --
                                                    ------------  ------------
    Total current liabilities                            381,445       390,185
                                                    ------------  ------------
DEFERRED TAX LIABILITY                                 2,596,899     2,461,396
                                                    ------------  ------------
TOTAL LIABILITIES                                      2,978,344     2,851,581
                                                    ------------  ------------
STOCKHOLDERS' EQUITY

Preferred stock - $1.00 par value, 1,000,000
  shares authorized; 60,208 (2009 -
  60,208) Class A Preferred Shares issued and
  outstanding; liquidation preference of
  $316,092 as of September 30, 2010                       60,208        60,208

Common stock - $0.01 par value; 50,000,000
  shares authorized; 9,733,527
  (2009 - 9,733,527) shares issued and out-
  standing                                                97,335        97,335
Additional paid-in capital                             9,140,554     9,102,096
Accumulated deficit                                   (2,999,980)   (3,015,688)
                                                    ------------  ------------
      Total stockholders' equity                       6,298,117     6,243,951
                                                    ------------  ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY          $  9,276,461  $  9,095,532
                                                    ============  ============












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

                                        5
<PAGE>
                                  ZUNICOM, INC.
      UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months
                and Nine Months Ended September 30, 2010 and 2009

                           For the three months ended  For the nine months ended
                           -------------------------  -------------------------
                                 September 30,               September 30,
                                   --------                    --------
                              2010          2009          2010          2009
                              ----          ----          ----          ----
REVENUE
Sales                       $    252,844 $         -- $    421,802 $         --
Service                           94,120           --      166,396           --
                            ------------ ------------ ------------ ------------
TOTAL REVENUE                    346,963           --      588,198           --
                            ------------ ------------ ------------ ------------
COST OF REVENUE
Cost of sales                    130,586           --      227,439           --
Direct servicing costs            45,450           --       76,867           --
                            ------------ ------------ ------------  -----------
TOTAL COST OF REVENUE            176,036           --      304,306           --
                            ------------ ------------ ------------  -----------
GROSS PROFIT                     170,927           --      283,892           --


OPERATING EXPENSES
 Selling, general and
  administrative                 295,552       98,927      727,877      349,730
Depreciation and
  amortization of property
  and equipment                   29,750          180       49,583          871
                            ------------ ------------ ------------  -----------
                                 325,302       99,107      777,460      350,601
                            ------------ ------------ ------------  -----------
LOSS FROM OPERATIONS            (154,375)     (99,107)    (493,568)    (350,601)

OTHER INCOME (EXPENSES)
 Interest income
  net, including $0, $66,353,
  $0, and $209,818, from
  related parties                  4,573       67,414       16,591      212,949
Equity (loss) in earnings
  Of unconsolidated investee     361,567      241,287      894,098     (240,713)
Loss on impairment                    --           --           --   (5,793,679)
                            ------------ ------------ ------------  -----------
                                 366,141      308,702      910,689   (5,821,443)
                            ------------ ------------ ------------  -----------








            The accompanying footnotes are an integral part of these
                       consolidated financial statements.
                                       6
<PAGE>
                                  ZUNICOM, INC.
                 UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
                      For the Three Months and Nine Months
                        Ended September 30, 2010 and 2009
                                   (Continued)

                           For the three months ended  For the nine months ended
                           -------------------------  -------------------------
                                 September 30,               September 30,
                                   --------                    --------
                               2010         2009           2010         2009
                               ----         ----           ----         ----
INCOME (LOSS) BEFORE TAXES
 AND DISCONTINUED OPERATIONS     211,766      209,594      417,121   (6,172,044)

PROVISION FOR RECOVERY
 OF INCOME TAXES                (121,399)      38,588     (220,232)   2,225,075
                            ------------ ------------ ------------  -----------
INCOME (LOSS) FROM CONTINUING
 OPERATIONS                       90,367      248,182      196,889   (3,946,969)
LOSS FROM DISCONTINUED
 OPERATIONS, NET OF TAXES        (23,926)     (60,768)    (164,474)    (168,072)
                            ------------ ------------ ------------  -----------
NET INCOME (LOSS)           $     66,441 $    187,414 $     32,415  $(4,115,041)
                            ============ ============ ============  ===========
Net income (loss)
attributable to common
stockholders                $     61,022 $    181,995 $     15,707  $(4,131,922)
                            ============ ============ ============  ===========
 Basic net income (loss)
  per share attributable
  to common stockholders:
  Income from continuing
  operations                $      0.01  $       0.03 $      0.03   $     (0.39)
                            ============ ============ ============  ===========
 Loss from discontinued
  operations                $        (*) $     (0.01) $     (0.03)  $     (0.03)
                            ============ ============ ============  ===========
    Net income (loss)
     per share              $      0.01  $       0.02 $         *   $     (0.42)
                            ============ ============ ============  ===========
 Number of weighted average
 shares of common stock
 outstanding
    Basic                      9,733,527    9,733,527    9,733,527    9,751,006
                            ============ ============ ============  ===========
Diluted net income (loss)
 per share attributable to
 common stockholders:
 Income from continuing
 operations                 $      0.01  $      0.03  $      0.03   $     (0.39)
                            ============ ===========  ============  ===========
 Loss from discontinued
  operations                $        (*) $     (0.01) $     (0.03)  $     (0.03)
                            ============ ===========  ============  ===========

               The accompanying footnotes are an integral part of
                    these consolidated financial statements.
                                        7
<PAGE>
                                  ZUNICOM, INC.
                 UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
                      For the Three Months and Nine Months
                        Ended September 30, 2010 and 2009
                                   (Continued)

                           For the three months ended  For the nine months ended
                           -------------------------  -------------------------
                                 September 30,               September 30,
                                   --------                    --------
                               2010         2009          2010          2009
                               ----         ----          ----          ----
Net income (loss) per share $      0.01  $      0.02  $         *   $     (0.42)
                            ============ ===========  ============  ===========
Number of weighted average
 shares of common stock
 outstanding
    Diluted                    9,953,943   9,853,943     9,953,943    9,751,006
                            ============ ===========  ============  ===========

*  Less than $0.01 per share


































            The accompanying footnotes are an integral part of these
                       consolidated financial statements.
                                        8
<PAGE>
                                  ZUNICOM, INC.
                 UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
               For The Nine Months Ended September 30, 2010 and 2009

                                                         2010          2009
                                                   ------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss                                           $     32,416  $ (4,115,040)
Adjustments to reconcile net loss to net
   cash used in operating activities:
 Depreciation and amortization of property
   and equipment                                         58,695        36,510
 Impairment of investment in UPG                             --     4,367,891
 Impairment in value of UPG notes                            --     1,425,788
 Write off of property and equipment                     10,748        11,666
 (Loss) equity in earnings of unconsolidated investee  (894,098)      240,713
 Non-cash stock-based compensation                       38,456        38,456
 Provision for income taxes                             135,503    (2,311,658)
 Change in operating assets and liabilities:
 Accounts receivable - trade                            (58,837)       (3,871)
 Accounts receivable - other                                 --         3,967
 Inventories                                              6,226        (1,247)
 Prepaid expenses and other current assets              (10,475)      (14,073)
 Accounts payable                                        50,726       (58,800)
 Accrued liabilities                                    (82,018)     (105,667)
 Customer deposits                                       22,553            --
                                                   ------------  ------------
 Net cash used in operating activities                 (690,105)     (485,365)
                                                   ------------  ------------
CASH FLOWS FROM INVESTING ACTIVITIES

 Purchase of property and equipment                                      (900)
 Purchase of business                                  (495,000)           --
 Purchase of UPG stock                                       --       (20,400)
                                                    ------------  -----------
 Net cash used in investing activities                 (495,000)      (21,300)
                                                    ------------  -----------
CASH FLOWS FROM FINANCING ACTIVITIES
 Principal payments on notes receivable                      --     1,096,875
 Dividends paid on preferred stock                      (16,708)      (16,881)
                                                   ------------   -----------
 Net cash (used in)provided by financing activities     (16,708)    1,079,994
                                                   ------------   -----------
NET (DECREASE) INCREASE  IN CASH AND CASH
 EQUIVALENTS                                         (1,201,814)      573,328
Cash and cash equivalents at beginning of period      5,680,943     1,522,831
                                                   ------------   -----------
Cash and cash equivalents at end of period            4,479,130     2,096,159
                                                   ============   ===========
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid                                      $         46   $        --
                                                   ============   ===========



            The accompanying footnotes are an integral part of these
                       consolidated financial statements.
                                        9
<PAGE>
                                  ZUNICOM, INC.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE A - ORGANIZATION

Zunicom,  Inc., ("Zunicom" or the "Company") was formed on January 10, 1992 as a
Texas corporation.  Zunicom's  consolidated  wholly-owned  subsidiary,  AlphaNet
Hospitality   Systems   Inc.   ("AlphaNet"),   has  been  a  provider  of  guest
communication  services to the hospitality  market.  AlphaNet  discontinued this
business as of August 31, 2010.  Accordingly,  the results of this  discontinued
operation are presented in our  Unaudited  Consolidated  Statements of Operation
above.  In April of 2010,  AlphaNet  purchased the assets and business of Action
Computer Systems and is now a reseller of point-of-sale software and hardware to
restaurants in southern Connecticut,  Westchester County, New York, and New York
City (Note K).  Zunicom  also holds a 41 percent  ownership  interest  in UPG, a
distributor  and  supplier  to a diverse  and  growing  range of  industries  of
portable  power  and  related  synergistic  products,  provider  of  third-party
logistics services and a custom battery pack assembler.

NOTE B - BASIS OF PRESENTATION

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

In the opinion of management,  all adjustments  considered  necessary for a fair
presentation  have been  included  for the three and nine  month  periods  ended
September  30,  2010.  The  results for the three and nine month  periods  ended
September  30, 2010 are not  necessarily  indicative  of the results that may be
expected  for the year ended  December  31,  2010.  The  unaudited  consolidated
financial  statements included in this filing should be read in conjunction with
the  Company's  audited  consolidated  financial  statements  and notes  thereto
included in the Company's annual report on form 10-K for the year ended December
31, 2009.

NOTE C - STOCK-BASED COMPENSATION

Stock-based  compensation expense recognized in the statements of operations for
the three and nine  months  ended  September  30,  2010 and  2009,  of  $12,959,
$12,959,$38,456,  and $38,456, respectively,  represents the amortization of the
restricted stock grant to the Company's chairman in 2007.

As of September 30, 2010, $37,751 of the restricted stock grant to the Company's
chairman remains  unamortized,  and $20,771 of the restricted stock grant to UPG
employees remains unamortized.  On January 21, 2009, the chief executive officer
of UPG resigned,  and according to the terms of the restricted  stock agreement,
forfeited his  restricted  stock grant.  As a result  227,229  shares of Zunicom
common stock were returned to the Company, and the investment in UPG was reduced
by $132,925.

Valuation Assumptions

The fair  values of option  awards  are  estimated  at the  grant  date  using a
Black-Scholes  option pricing model.  There were no options  granted in the nine
months ended september 30, 2010 or 2009.

                                       10
<PAGE>
NOTE C - STOCK-BASED COMPENSATION (CONTINUED)

Activity and Summary

Stock option activity under the 1999 and 2000 stock option plans was as follows:

                                                             Weighted Average
                                           Number of Shares   Exercise Price
                                           ----------------  -----------------
Options outstanding at December 31, 2009           525,000   $           0.85
      Granted                                           --   $             --
      Exercised                                         --   $             --
      Canceled, lapsed  or forfeited               400,000   $           0.90
                                           ---------------   ----------------
Options outstanding at September 30, 2010          125,000   $           0.71
                                           ===============   ================

The following table summarizes stock options outstanding under the 1999 and 2000
stock option plans at September 30, 2010:
                        Options Outstanding      Options Exercisable
                -------------------------------- --------------------
                             Weighted
                              Average
                             Remaining  Weighted             Weighted
                 Number of  Contractual  Average  Number of   Average
Range of          Options      Life     Exercise   Options   Exercise
Exercise Prices Outstanding (in years)   Price   Exercisable  Price
--------------- ----------- ----------- -------- ----------- --------
$ 1.75               25,000         6.4 $   1.75      25,000 $   1.75

$ 0.45              100,000         2.6 $   0.45     100,000 $   0.45
                ----------- ----------- -------- ----------- --------
$ 0.45 - $ 1.75     125,000         3.4 $   0.71     125,000 $   0.71
                =========== =========== ======== =========== ========


At September 30, 2010, the aggregate  intrinsic value of options outstanding was
$6,000 and the aggregate  intrinsic value of options exercisable was $6,000. The
aggregate  intrinsic value is calculated as the difference  between the exercise
price of the  underlying  awards and the quoted  price of the  Company's  common
stock for those awards that have an exercise  price  currently  below the quoted
price. At September 30, 2010, all outstanding options were fully vested.

NOTE D - NET INCOME (LOSS) PER SHARE

Basic net income  (loss) per share is  computed by  dividing  net income  (loss)
decreased  (increased)  by the  preferred  stock  dividends  of $5,419,  $5,419,
$16,708,  and $16,881 for the three and nine months ended September 30, 2010 and
2009,respectively,  by the weighted average number of common shares  outstanding
for the period.

Diluted net income (loss) 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.  The Company's common



                                       11
<PAGE>
NOTE D - NET INCOME (LOSS) PER SHARE (CONTINUED)

stock equivalents include all common stock issuable upon conversion of preferred
stock and the exercise of outstanding stock options.

The dilutive effect of 100,000  in-the-money  options and the dilutive effect of
the conversion of 60,208 shares of preferred stock into 120,416 shares of common
stock have been  included in the  computation  of dilutive net income (loss) per
share for the nine months  ended  September  30, 2010 but not for the nine month
period ended September 30, 2009, as the effect would be anti-dilutive.  However,
100,000 in-the-money options and the dilutive effect of the conversion of 60,208
shares of preferred  stock into 120,416  shares of common stock were included in
the  computation  of dilutive  net income per share for the three  months  ended
September 30, 2010 and 2009.

NOTE E - UNCONSOLIDATED INVESTEE

The  Company's  investment  in UPG is accounted  for under the equity  method of
accounting  for the three and nine month  periods  ended  September 30, 2010 and
2009.  Following is a summary of financial  information of UPG for the three and
nine months ended September 30, 2010 and 2009:
                                  Three and Nine Months Ended September 30,
                              ----------- ----------- ----------- -----------
                                  2010        2009       2010         2009
                              ----------- ----------- ----------- -----------
                                              ($ in thousands)
----------------------------- ----------- ----------- ----------- -----------
Net revenues                  $   28,304  $   27,495  $   82,733  $   83,132
----------------------------- ----------  ----------  ----------  ----------
Cost of revenues                  22,833      22,958      67,768      68,682
----------------------------- ----------  ----------  ----------  ----------
Gross profit                       5,471       4,537      14,965      14,450
----------------------------- ----------  ----------  ----------  ----------
Operating expenses                 3,828       3,305      10,959      13,256
----------------------------- ----------  ----------  ----------  ----------
Income (Loss) from operations      1,643       1,232       4,006       1,194
----------------------------- ----------  ----------  ----------  ----------
Interest expense                     (36)       (233)       (435)       (719)
----------------------------- ----------  ----------  ----------  ----------
Income (Loss) from operations
 before income tax provision       1,606         992       3,571         476
----------------------------- ----------  ----------  ----------  ----------
Income tax provision                (699)       (380)     (1,314)       (998)
                              ----------  ----------  ----------  ----------
Net income (Loss)             $      907  $      612  $    2,257        (522)
                              ==========  ==========  ==========  ==========

Following is a summary of the balance  sheets for UPG as of  September  30, 2010
and December 31, 2009.
                                            September 30, 2010 December 31, 2009
                                                       ($ in thousands)
                                               --------------  -----------------
Current assets                                        49,352             46,706
Noncurrent assets                                      2,143              2,933
Current liabilities                                   29,410             29,303
Noncurrent liabilities                                   657              1,305
Shareholders' equity                                  21,427             19,031
                                       12
<PAGE>
NOTE E - UNCONSOLIDATED SUBSIDIARY - INVESTEE (CONTINUED)

The Company evaluated its investment in UPG at March 31, 2009 to determine if an
Other-than-temporary  decline in fair value  below the cost basis had  occurred.
The primary input in estimating  the fair value of the investment was the quoted
market value of UPG publicly-traded  shares as at March 31, 2009, which declined
significantly  from the date of the  initial  investment  in December  2006.  As
aresult of the severe decline in the quoted market value, the Company recognized
impairment  in other income  (expense) of $4,367,891 to adjust the cost basis in
the investment to its estimated fair value.  The carrying value of the Company's
investment in UPG as of September 30, 2010, is $4,239,794.

NOTE F - FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES

The Company utilizes a hierarchy that prioritizes fair value  measurements based
on the  types  of  inputs  used for the  various  valuation  techniques  (market
approach,  income approach and cost  approach).  The levels of the hierarchy are
described below:

o   Level 1:  consists of financial  instruments  whose value is based on quoted
    market prices for identical financial instruments in an active market

o   Level 2: consists of financial  instruments  that are valued using models or
    other valuation  methodologies.  These models use inputs that are observable
    either directly or indirectly;  Level 2 inputs include (i) quoted prices for
    similar  assets or  liabilities  in active  markets,  (ii) quoted prices for
    identical or similar  assets or  liabilities in markets that are not active,
    (iii) pricing models whose inputs are observable for  substantially the full
    term of the financial  instrument  and (iv) pricing  models whose inputs are
    derived  principally from or corroborated by observable  market data through
    correlation or other means for  substantially the full term of the financial
    instrument

o   Level 3: consists of financial instruments whose values are determined using
    pricing models that utilize significant inputs that are primarily
    unobservable, discounted cash flow methodologies, or similar techniques, as
    well as instruments for which the determination of fair value requires
    significant management judgment or estimation

The  assessment  of the  significance  of a  particular  input to the fair value
measurement  requires  judgment  and  may  affect  the  valuation  of  financial
instruments and their classification within the fair value hierarchy.  Financial
instruments  are classified in their entirety based on the lowest level of input
that is significant to the fair value measurement. There have been no changes in
the classification of any financial instruments within the fair value hierarchy.

The  Company  recognized  an  other-than-temporary  impairment  to other  income
(expense) of $4,367,891 to adjust the cost basis in the Company's  investment in
UPG of  approximately  $7,916,442 to its estimated fair value (see Note E ). The
valuation  methodology utilized the quoted market value of UPG's publicly traded
shares.  The Company's  investment in UPG was  classified as a Level 1 financial
instrument  in the fair  value  hierarchy,  as the  estimated  fair value of the
investment was based on observable inputs at the date of the impairment.




                                       13
<PAGE>
NOTE G - RELATED PARTY NOTES

Through December 15, 2009, the Company held two unsecured  promissory notes from
UPG,  one in the  amount  of  $3,000,000  and a  second  note in the  amount  of
$2,850,000  for a total of  $5,850,000.  Both notes were dated December 20, 2006
and carried the same terms. These terms provided for quarterly interest payments
at an annual  interest rate of 6% and principal  payments in 16 equal  quarterly
installments  of $365,625  each,  beginning  September 20, 2008. On December 16,
2009, both notes were paid in full, and the Company received cash of $3,771,141.
The  Company  recorded  $1,124,146  as a reversal  of a  valuation  charge and a
reduction in the impairment charge and an expense in general and  administrative
expenses of $301,641 for the discount on the notes.

NOTE H - SHAREHOLDERS' EQUITY

During the three and nine months ended  September 30, 2010 and 2009, the Company
paid a cash dividend of $5,419,  $16,708, $5,419 and $16,881,  respectively,  to
the holders of its class A Preferred Stock.

NOTE I - LEGAL PROCEEDINGS

The  Company  is  subject  to legal  proceedings  and  claims  that arise in the
ordinary  course of  business.  As of  September  30,  2010,  the Company is not
subject to any ongoing legal proceedings.

NOTE J - COMMITTMENTS

Leases

During the third quarter of 2008, the Company  extended the office lease for one
year to April 30,  2010 at the same rent and terms.  In January  2010,  AlphaNet
vacated  the leased  premises.  AlphaNet  leased  certain  equipment  located at
customer  sites as part of its Office (TM) product.  As of August 31, 2010,  the
Company  discontinued its office (TM) product.  As a result,  the Company has no
further commitments related to its office (TM) product.

On April 23, 2010, AlphaNet closed on the acquisition of Action Computer Systems
(Note  K)  and  now  provides  point-of-sale  software,   hardware  systems  and
maintenance  and support to  restaurants in the New York  metropolitan  area and
southern  Connecticut.  The Company  assumed Action  Computer  Systems' lease on
approximately  1,200 square feet of office  space in  Larchmont,  New York.  The
Company's commitment for rent is as follows.


------------- ---------   -------  -------  -------  -------  --------
             Remainder of
                  2010      2011     2012     2013     2014     Total
------------- ---------   -------  -------  -------  -------  --------
Office lease     $5,910   $23,818  $25,892  $26,669  $25,117  $113,314
------------- ---------   -------  -------  -------  -------  --------







                                       14
<PAGE>
NOTE K - PURCHASE OF BUSINESS

On March 30,  2010,  AlphaNet  entered  into a binding  agreement to acquire the
business  and the  assets  of  Advanced  Computer  Software,  Inc.,  a New  York
corporation,  doing business as Action Computer  Systems for a purchase price of
$495,000.  Action Computer  Systems is a reseller of  point-of-sale  software to
restaurants  in the New York  metropolitan  area and southern  Connecticut.  The
software,  Restaurant  Manager,  was developed by Action  Systems  Inc.,  Silver
Spring,  Maryland. On April 23, 2010, AlphaNet closed on the acquisition and now
provides point-of-sale software, hardware systems and maintenance and support to
restaurants in the New York metropolitan area and southern Connecticut.

The following  represents the preliminary  purchase price allocation at the date
of the acquisition:

Customer Lists                 $335,000
Covenant not to compete         150,000
Fixed Assets                     10,000
---------------------------------------
Purchase price                 $495,000
                               ========

The purchase price is not considered final as of the date of this report, as the
Company is still reviewing all of the underlying  assumptions  and  calculations
used in the allocation.  However,  the Company believes the final purchase price
allocation will not be materially different than that presented herein.

The total  revenue of Action  Computer  Systems  since the date of  acquisition,
included  in the  consolidated  income  statement  for the three and nine months
ended September 30, 2010 was $346,963 and $588,198 respectively.

Supplemental  pro-forma information regarding the results of the combined entity
for the current reporting periods and the comparative periods presented in these
consolidated  financial  statements  has not been  presented,  as the  financial
information  is  not  available,  and  it is  impracticable  for  management  to
reasonably estimate the effect for such disclosure.  Management does not believe
the pro forma  results are  materially  different  from  actual  results for the
periods ended September 30, 2010 and September 30, 2009.

NOTE L - DISCONTINUED OPERATIONS

During the three months ended September 30, 2010, the Company  discontinued  its
guest communications  services business. The Company chose to abandon the assets
associated with this business and  accordingly  has written these assets off and
recorded  a  corresponding  loss  of  $6,392  and  $10,748  in the  consolidated
statements of operations for the three and nine months ended September 30, 2010,
respectively, which is included in the loss from discontinued operations for the
corresponding periods.

Total revenues from  discontinued  operations  were $$7,575 and $114,025 for the
three and nine months ended September 30, 2010.  Pre-tax loss from  discontinued
operations  was  $36,252  and  $249,203  for the  three  and nine  months  ended
September 30, 2010.




                                       15
<PAGE>
Total revenues from  discontinued  operations were $120,027 and $428,181 for the
three and nine months ended September 30, 2009.  Pre-tax loss from  discontinued
operations  was  $92,073  and  $254,655  for the  three  and nine  months  ended
September 30, 2009.


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 Unaudited Consolidated Interim 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 those 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-K for the year ended
December 31, 2009.

RESULTS OF OPERATIONS

Currently, the operations of Zunicom are conducted through its wholly-owned
subsidiary, AlphaNet. AlphaNet has been a provider of guest communication
services to the hospitality market. AlphaNet discontinued this business as of
August 31, 2010. Accordingly, the results of this discontinued operation are
presented in our Unaudited Consolidated Statements of Operation above. In April
2010, AlphaNet purchased the assets and business of Action Computer Systems and
is now a reseller of point of sale software and hardware to restaurants in
southern Connecticut, Westchester County, New York, and New York City.

Three months ended September 30, 2010

REVENUE

For the three month period ended September 30, 2010, Zunicom, through its wholly
owned subsidiary Alphanet which, until August 31, 2010,consisted of two product
lines, had consolidated revenues from continuing operations of $346,963 compared
to $0 for the same period in 2009. This revenue is from Action Computer Systems
which was acquired in April 2010.

Revenues of the Office (TM) product line have been declining sharply in recent
years due to increasing use of laptops by business travelers, increasing numbers
of hotels turning their business centers into a "free to the guest" model for
competitive reasons, and competition from large "full service" providers who
include business centers as part of a complete package of outsourced
administrative services to hotels. In April 2010, AlphaNet acquired a product
line as a reseller of point-of-sale software to restaurants continuing its
history of providing services to the hospitality industry. (See Footnote K,
Purchase of Business, to the Consolidated Financial Statements above.)
Management has determined that the Office (TM) product line is no longer viable
and discontinued that product line effective August 31, 2010.


                                       16
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (CONTINUED)

COST OF REVENUE

For the three month period ended September 30, 2010, Action Computer Systems had
cost of revenue from continuing operations of $176,036, compared to $0 for the
same period in 2009.

OPERATING EXPENSES

For the three month period ended September 30, 2010, Zunicom's consolidated
operating expenses from continuing operations, consisting of selling, general
and administrative expenses and depreciation and amortization of property and
equipment increased to $325,302 compared to $99,107 for the same period in 2009,
an increase of $226,195 or 228.2%. The increase is due to an increase in
Zunicom's expenses of $43,722, and Action Computer Systems operating expenses
for the three month period ended September 30, 2010, of $182,473.

Zunicom's selling, general and administrative expenses for the three month
period ended September 30, 2010 were $142,651 compared to $98,929 for the same
period in 2009, an increase of $43,722 or 44.2%. The increase is primarily
attributable to increased consulting and accounting fees related to the wind
down of the Office (TM) product and the integration of Action Computer Systems.

For the three month period ended September 30, 2010, the Company recorded
$29,750 in depreciation and amortization expense from continuing operations
compared to $180 in 2009. The increase is due to depreciation and amortization
of the assets acquired in the acquisition of Action Computer Systems.

OTHER INCOME / EXPENSE

Zunicom's consolidated interest income for the three month period ended
September 30, 2010 was $4,573 compared to interest income of $67,414 for the
same period in 2009, a decrease of $62,841, or 93.2%. The decrease is due to the
payoff of the UPG notes. Since the note payoff date of December 16, 2009,
interest income consists only of interest on bank cash balances.

Equity in earnings of investee of $361,567 represents Zunicom's share of UPG's
net income for the three month period ended September 30, 2010 recorded in
accordance with the equity method of accounting for an unconsolidated investee.

Zunicom recorded a loss from discontinued operations of $36,252 for the three
months ended September 30, 2010 compared to $92,073 for the same period in 2009.
The Office (TM) product line was discontinued as of August 31, 2010.

Nine months ended September 30, 2010

REVENUES

For the nine month period ended September 30, 2010, Zunicom, through its wholly
owned subsidiary Alphanet, had consolidated revenues of $588,198 from continuing
operations compared to $0 for the same period in 2009. This revenue is from
Action Computer Systems which was acquired in April 2010.



                                       17
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (CONTINUED)

Revenues of the Office (TM) product line have been declining sharply in recent
years due to increasing use of laptops by business travelers, increasing numbers
of hotels turning their business centers into a "free to the guest" model for
competitive reasons, and competition from large "full service" providers who
include business centers as part of a complete package of outsourced
administrative services to hotels. On April 23, 2010, AlphaNet acquired a
product line as a reseller of point-of-sale software to restaurants continuing
its history of providing services to the hospitality industry. (See Footnote K,
Purchase of Business, to the Consolidated Financial Statements above.)
Management has determined that the Office (TM) product line is no longer viable
and discontinued that product line effective August 31, 2010.

COST OF REVENUES

For the nine month period ended September 30, 2010, Zunicom's consolidated cost
of Revenues from continuing operations is $304,306 compared to $0 for the same
period in 2009. This increase is due to the acquisition of Action Computer
Systems on April 23, 2010.

OPERATING EXPENSES

For the nine month period ended September 30, 2010, Zunicom's consolidated
operating expenses, consisting of selling, general and administrative expenses
and depreciation and amortization of property and equipment from continuing
operations increased to $777,460 compared to $350,601 for the same period in
2009, an increase of $426,859 or 121.8%. The increase is due to an increase in
Zunicom's expenses of $121,139, and Action Computer Systems operating expenses
from the acquisition date through September 30,2010, of $305,720.

Zunicom's selling, general and administrative expenses for the nine month period
ended September 30, 2010 were $470,871 compared to $349,732 for the same period
in 2009, an increase of $121,139 or 34.6%. The increase is attributable to
increased accounting, legal, and consulting fees. The increased fees are related
to the acquisition of Action Computer Systems.

For the nine month period ended September 30, 2010, the Company recorded $49,583
in depreciation and amortization expense from continuing operations compared to
$871 in 2009. The increase is due to depreciation and amortization of the assets
acquired in the acquisition of Action Computer Systems.

OTHER INCOME / EXPENSE

Zunicom's consolidated interest income for the nine month period ended September
30, 2010 was $16,591 compared to interest income of $212,949 for the same period
in 2009, a decrease of $196,358, or 92.2%. The decrease is due to the repayment
of the UPG notes. Since repayment of the note on December 16, 2009, interest
income consists only of interest on bank cash balances.

Equity in earnings of investee of $894,098 represents Zunicom's share of UPG's
net income for the nine month period ended September 30, 2010 recorded in
accordance with the equity method of accounting for an unconsolidated investee.



                                       18
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (CONTINUED)

Zunicom recorded a loss from discontinued operations of $249,203 for the nine
months ended September 30, 2010 compared to $254,655 for the same period in
2009. The Office (TM) product line was discontinued as of August 31, 2010.

The Company evaluated its investment in UPG at March 31, 2009 to determine if an
other than temporary decline in fair value below the cost basis had occurred.
The primary input in estimating the fair value of the investment was the quoted
market value of UPG publicly traded shares as at March 31, 2009, which declined
significantly from the date of the initial investment in December 2006. As a
result of the severe decline in the quoted market value, the Company recognized
an impairment in other income (loss) of $4,367,891 to adjust the costs basis in
the investment to its estimated fair value. The carrying cost of the Company's
investment in UPG as of September 30, 2010 is $4,239,794.

In conjunction with its evaluation of its investment in UPG described above, the
Company also evaluated its two unsecured promissory notes from UPG in the amount
of $4,753,125 to determine if an other than temporary decline in the fair value
of the notes had occurred. The principle inputs in estimating the fair value of
the UPG notes was the possible impairment of UPG's ability to service the notes
in the future given the revenue decline in the first quarter of 2009, especially
from its largest customer, and the profitability decline from 2007 to the first
quarter of 2009. As a result, the Company recognized a valuation loss in other
income (loss) of $1,425,788 to adjust the cost basis of the notes to their
estimated fair value. As a result, the carrying value of the UPG notes as of
March 31, 2009, was $3,327,338. The notes were paid off on December 16, 2009
(See Note G above).

LIQUIDITY

Zunicom, on a consolidated basis, had cash and cash equivalents of $4,479,130 at
September 30, 2010.

Net cash used in operating activities was $690,105 for the nine month period
ended September 30, 2010 as compared to $485,365 for the same period in 2009.
The cash used in operating activities is primarily attributable to the net
income of $32,416 plus depreciation of $58,695, write off of property and
equipment of $10,748, non-cash stock based compensation of $38,456, provision
for federal income taxes of $135,503, offset by a decrease in working capital of
$71,825, and a decrease in equity in earnings of investee of $894,098.

For the nine months ended September 30, 2010 cash flow used in investing
activities was $495,000 representing the acquisition of Action Computer Systems.

Net cash used in financing activities for the nine month period ended September
30, 2010 was $16,708 representing payment of a cash dividend on the Company's
preferred stock.

Zunicom management believes that cash on hand will be sufficient to meet its
operational needs over the next year.





                                       19
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Foreign Currency Exchange

Our customers are primarily located in the United States. Up until August 31,
2010, we had one customer in Canada our exchange rate risk between the US and
Canadian dollar was minimal. We have not used derivative instruments to hedge
our foreign exchange risks. Since August 31, 2010, all of our customers are in
the United States and we will no longer be subject to any foreign currency risk.

Interest Rates

We currently have no direct borrowings and therefore are not exposed to market
rate risk for changes in interest rates.

ITEM 4. CONTROLS AND PROCEDURES

The Company's management, including the Company's principal executive officer
and principal financial officer, has evaluated the effectiveness of the
Company's disclosure controls and procedures (as defined in Rules 13(a) - 15(e)
and 15(d) - 15(e) under the Securities Exchange Act of 1934) as of the nine
months ended September 30, 2010. Based upon that evaluation, the Company's
principal executive officer and principal financial officer have concluded that
the disclosure controls and procedures were effective as of September 30, 2010
to insure that the information required to be disclosed by us in the reports
filed or submitted by us under the Securities Exchange Act of 1934, as amended,
was recorded, processed, summarized or reported within the time periods
specified in the rules and regulations of the SEC, and included controls and
procedures designed to ensure that information required to be disclosed by us in
such reports was accumulated and communicated to management, including our
principal executive officer and principal financial officer, as appropriate to
allow timely decisions regarding required disclosures.

There were no changes in the Company's internal control over financial reporting
that occurred during the Company's last fiscal quarter that have materially
affected, or are reasonably likely to materially affect, the Company's internal
control over financial reporting.




















                                       20


<PAGE>
PART II - OTHER INFORMATION

Item 1. Legal Proceedings.  None

Item 6. Exhibits.
    a.  The following exhibits are filed as part of this report or incorporated
        herein as indicated.

        3.1  Articles of Incorporation, as amended (incorporated by reference to
             the Company's Registration Statement on Form SB-2, Commission File
             No. 33-98662, filed on October 30, 1995 and amended on January 5,
             1996 and January 23, 1996).

        3.2  Certificate of Designation (incorporated by reference to the
             Company's Registration Statement on Form SB-2, Commission File No.
             33-98662, filed on October 30, 1995 and amended on January 5, 1996
             and January 23, 1996).

        3.2A Amended Certificate of Designation (incorporated by reference to
             the Company's Registration Statement on Form SB-2, Commission File
             No.33-98662, filed on October 30, 1995 and amended on January 5,
             1996 and January 23, 1996).

        3.3  Bylaws (incorporated by reference to the Company's Registration
             Statement on Form SB-2, Commission File No. 33-98662, filed on
             October 30, 1995 and amended on January 5, 1996 and January 23,
             1996).

        10.1 Second Amended and Restated Creditors Subordination Agreement
             (incorporated by reference to the Company's Quarterly Report on
             Form 10-Q for the Quarter ended June 30, 2008, Commission File No.
             0-27210, filed August 14, 2008)

        10.2 Purchase and Sale agreement between AlphaNet Hospitality Systems,
             Inc. Advanced Computer Software, Inc. dated March 30, 2010
             (incorporated by reference to the Company's Annual Report on Form
             10-K for the Fiscal year ended December 31, 2009, Commission File
             No. 000-27210, filed April 7, 2010)

        14.1 Code of Ethics and Business Conduct as adopted March 30, 2004
             (incorporated by reference to the Company's Annual Report on Form
             10-K for the Fiscal Year ended December 31, 2003, Commission File
             No. 0-27210, filed March 31, 2004)

        31.1 Certification of Chief Executive Officer Pursuant to Section 302 of
             the Sarbanes-Oxley Act of 2002*

        31.2 Certification of Chief Financial Officer 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*




                                       21
<PAGE>
        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*
-----------------
* Filed herewith.




















































                                       22

<PAGE>
                                    Signature
                                    ---------

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.



                                       Zunicom, Inc.
                                       -----------------------------
                                       (Registrant)

Date:  November 14, 2010                 /s/ John C. Rudy
                                       --------------------------------
                                       John C. Rudy
                                       Chief Financial Officer
                                       (principal financial officer)







































                                       23