Asus Sees Huge Gain In India’s Smartphone Market

by Sandhya Malhotra    Jul 16, 2014


Taiwan-based PC maker Asus has recently shifted its focus to the smartphone market. As expected, it sees a huge gain in India’s smartphone market with the launch of its affordable Zenfone range of smartphones in the country. The company believes that getting into this vibrant mobile space will also make it a complete IT vendor, selling everything from PCs to smartphones.

The company has been among the well established players in the desktop, laptops and tablets category, but with a sales dropping in the above categories, the company’s entry into the smartphone market has assumed more importance.

The shift comes in at a time when India is considered to be one of the fastest growing markets for smartphones and almost all the smartphone majors are trying hard to grab a share of the market.

Along with the new launch, the company has plans to frequently update its smartphone portfolio with devices at various price points. In India, Asus smartphone portfolio Zenfone 4 has been announced at Rs 5,999, while Zenfone 5 will set you back by Rs 9,999. The 6 inch Zenfone 6 is priced at Rs. 16,999.

Asus, which already sells tablets in India under Fonepad series, expects to sell 4-5 million smartphones next year as it builds its brand and focuses on increasing distribution. “This year, we should sell about 5 lakh unit of smartphones. The focus right now is on increasing distribution and offering a good product at a good price point in India,” said Peter Chang, Regional Head for South Asia and Country Manager for India.

Speaking at the side-lined of Asus Zenfone launch Chang, who will be now responsible for smartphones in addition to laptops and tablets said, “We spent more than 10 years in smartphones in Taiwan and we are ahead of the competition in our home town. Having said that, India is a different market, we have been present here with our PC range. Our market strategy for smartphone will be very aggressive, we will ensure fastest time to market of our phones at a very attractive pricing.”

When asked about initial targets, Chang said, “We want to be among top five mobile players. We want to cover all the segments starting from 4 inch screen size up to 10 inch. We want to be known as complete device company.”

On the tablet cum Phablet category, with the launch of dual sim, the company has started gaining momentum back in the phablet market. “We are not going to lose focus on any of the business line with the addition of new category,” he emphasized.

While laptops and tablets have provided a boost for Asus, the PC business is capitalizing on its position in emerging markets as the company broadens its product portfolio. Asus’ continued expansion has paid off, as it is now the fifth-largest global PC maker. Looking to continue this growth, Asus hopes to leverage its laptops lineup with tablets and the PadFone and FonePad smartphones.

In the past, IT vendors such as Dell, Cisco and few others tried their fortune in the smartphone and tablets market, but vanished without a trace in a short time. Furthermore, it will be interesting to see how traditional IT vendor Asus strategy in the smartphone will pan out in the long run. Only time will say whether it will be able to make a mark in the country’s already crowded smartphone market.