Asustek Computer expects its handset shipments to grow dramatically to 16 million units in 2015, helping its profits from the business line to reach at least NT$2 billion in the year, according to sources from the upstream supply chain. Asustek is expected to ship over eight million handsets in 2014 and the business segment already achieved profitable operation in the third quarter of 2014.
Asustek has cooperated with Intel for its ZenFone series smartphones, targeting mainly consumers seeking products with high price-performance ratio, and with Intel’s subsidies, Asustek shipped almost three million smartphones in the third quarter, said the sources.
The profit growth in the handset business is expected to help cover the company’s tablet business, which is earning almost no profits and will only be able to have shipments of 10 million units in 2014, weaker than those in 2013, the sources noted.
The sources believe if Asustek is able to further enhance its brand recognition and integration between its smart mobile devices, the company should be able to enter into the smartphone markets in China and the US and establish a meaningful place in the US$299-599 mid-range smartphone segment.
However, the sources are also concerned that Intel is likely to start reducing its subsidies in the near future and may affect Asustek’s performance in the smartphone market.