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Asus is still making profit even after selling 4GB Zenphone 2 for 270$

by Nishant 2

A phone with 4GB of RAM and a Atom Z3560 processor with a 13MP camera is priced only at 270$. Yes you heard it write. Asus Zenphone 2 is cheapest phone with 4GB RAM and is priced too good that even companies like Xiaomi wont imagine and yet they will be making a good profit out of it.

After the end of the conference, Tencent Digital ASUS Computer Inc. President and CEO Jerry Shen had an exclusive interview, Mr. Shen revealed a lot of information about Zenphone 2 including the profit margin.

Jerry Shen said that the price of Zenphone 2 is extremely low but will still be making profit. The key to making money is the ability to control costs, and Asus is pretty good, because of the Asus’s Research and Engineering, Asus has managed to make Zenphone 2 this cheap.

Questions were asked about Sales of the same, Jerry Shen said that ZenFone series has sold about 10 million units. This year, Asus is ready to sell about 25 million units of smartphones, wherein the amount of from 7-8% in China last year will be increased to 30%.

Do you think the goal they have said can be achived? Let us know in the comment section below!

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  • Victor Ksl

    Of course they making a lot of profit because the Zenfone 2 is a budget phone, only 1 SIM slot could support 4G, the second slot only 2G.

    • Shanos

      I think with this phone they are aiming to get a larger sales base outside of China, from the interview it appears they are looking at around 70% of sales to the non Chinese market.

      In most parts of the world dual sim is the norm, I have had several China phones and never needed the 2nd sim, the fact that they have the option of a second 2g only sim should be seen as an added extra not a downside.

      If you look at the other big players Apple offers only a single sim and has no problem selling millions of phones and whilst Samsung do offer a small number of dual sim phones they are territory specific and make up a very small percentage of sales.

      It would appear that some of the cost savings are probably down to the use of the Atom Z3560 processor over the much higher priced (and hotter snapdragon 810) and the fact they are not going for unnecessary 2k+ screens.

      On a very positive note the phones will be running ZenUI based on Lollipop which should make great use of the Atom Z3560 processor’s 64bit architecture.

      But until its released and the hands on reviews with benchmarks come out we will have to wait and see.

      Regards Shanos