Fierce competition in the smartphone market: Asustek revised its estimates of deliveries to Zenfone

The tough competition in the smartphone market has pushed the Taiwanese Asustek Computer to review the estimates for 2016 deliveries ZenFone products: instead of the 30 million originally planned (for all markets excluding China), there is now talk of 25 million units. The downsizing of the estimates was made due to the increasing competition from Chinese producers in the markets of India, Brazil, Russia, Southeast Asia and Africa.

Asustek Computer has originally set a goal of deliveries 30 million ZenFone series of smartphones for all markets, except for China, for 2016. During a meeting with investors the company has, however, he retracted downward estimated at 25 million units. Market analyzes indicate that downsizing was done because of the increasing competition from Chinese producers of smartphones in India, Brazil, Russia, Southeast Asia and Africa.

The Asustek last year handed over 20 million smartphones recording a significant increase compared to 8.5 million units delivered in 2014, which made it possible to make profitable the turnover linked to smartphones. During the reporting period the company has, however, encountered some difficulties in the Chinese market, with results below the expected.

On the other hand the smartphone market was linked to the Celestial Empire is crossed by a very fierce competition. Huawei, for example, has decided to reduce orders for smartphones for the first quarter due to high inventory levels and Xiaomi in the fourth quarter of 2015 lost the second position in the market undermined by Apple. The market analyst firm IDC record market share of 15.2% for Huawei, by 14.6% to 14.4% for Apple and Xiaomi.

Tay Xiaohan, senior market analyst for IDC, commented: "Xiaomi has entered the Chinese smartphone market when it was still growing and has been able to capture significant market share with its unique sales model. Huawei, with investments in research and development, robust products, branding and channel connections has seen strong growth in 2015. Apple, in contrast, continues to be a strong and attractive brand to Chinese consumers. With the Chinese market slows down, it is unlikely that we will see new players exert a great impact on the smartphone market compared to how Xiaomi has done in previous years. "

Chinese producers of smartphones account for 40% of the world market of smartphones and seven of the top 10 manufacturers are Chinese: Asustek will find certainly a more complex challenge to be able to maintain profits in this market.