China market: Asustek braces for strong smartphone competition


Asustek Computer's plan to boost sales of its new ZenFone series smartphones in China with low prices could meet strong competition from local brands including Huawei, TCL, Xiaomi Technology and ZTE, according to industry sources.
Asustek will start marketing its ZenFone smartphones in Taiwan on April 8 and in China on April 11. The 5-inch ZenFone will be available for the equivalent of US$149 unlocked and 6-inch models at US$199.
The 4-inch ZenFone, which will be priced at US$99, will be delayed to May, the sources noted.
Asustek has teamed up with e-commerce operator Uitox to form an e-commerce company, Asus Digital International (ADI), to strengthen its marketing online.
Huawei has recently launched a new 5.5-inch smartphone, the Honor 3X, which is powered by an 8-core processor priced at CNY998 (US$161). Pre-sale orders for the Honor 3X reportedly have exceeded 10 million units, revealed the sources.
Additionally, Huawei has also launched a more competitive model, the Honor 3C, which is available for CNY798.
Other vendors, including TCL, Xiaomi and ZTE, are expected to launch comparable models to take on the Honor X3, Honor 3C and Asustek's ZenFone, said the sources.
Monica Chen, Taipei; Steve Shen, DIGITIMES