Asustek, HTC under increasing pressure from China smartphone vendors
Sammi Huang, Taipei; Steve Shen, DIGITIMES [Wednesday 5 April 2017]
Sales of smartphones by Asustek Computer and HTC in China, India and Southeast Asia have been affected by strong presence of China-based vendors in these markets, according to Taiwan-based supply chain makers.
Smartphone shipments by Asustek were lower than expected in the fourth quarter of 2016 due to a tight supply of displays and camera modules. Consequently, Asustek shipped only 20 million smartphones in 2016, lower than its target of 25 million units.
Despite an array of marketing efforts, Asustek's shipments of smartphones still remained in the doldrums in the first quarter of 2017, forcing the vendor to scale back its purchases of parts and components, said the sources.
Efforts by Asustek to accelerate into the mid-range to high-end segment have also been undermined by an insufficient supply of OLED panels, noted the sources, adding that Asustek has been seeking to buy OLED panels from China-based Tianma Micro-electronics as it has failed to secure the supply of needed panel products from Samsung Display.
The time-consuming process for the development of high-end models could also affect Asustek's efforts to ramp up smartphone shipments in 2017, commented the sources.
Despite the launch of flagship models recently, HTC also has tried in vain to ramp up its shipments in China and other overseas markets in the first quarter of 2017 due to keen competition from Huawei, Oppo, Xiaomi, Vivo and Gionee, indicated the sources.
Source: Asustek, HTC under increasing pressure from China smartphone vendors
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