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ASUS, HTC Facing Tremendous Competition from Chinese Smartphone Brands

by Anvinraj Valiyathara 5

Chinese smartphone brands are quite popular in Asian countries. The popularity is such that the Chinese brands are giving tough competition to well-established brands. Yesterday, we reported that Xiaomi has become the most preferred smartphone brand in India. Now, fresh information coming from supply chain in Taiwan brands like HTC and ASUS are losing popularity in China, India and Southeast Asia mainly because of the growing popularity of Chinese smartphone vendors in these regions.

Due to low supply of displays and camera modules, ASUS smartphone shipments declined below the expected number in the last quarter of 2016. As a result, the Taiwanese company shipped 20 million units in the previous year which is lower than its target of shipping 25 million smartphones. Since it shipped lesser number of smartphones, it could achieve a small number of sales.

ASUS has been making efforts to sell more of mid-range and high-end smartphones, but its growth has been hampered by poor supply of OLED panels. As the Taiwanese company failed to acquire a sufficient number of OLED panels from Samsung Display, it is now availing OLED panels from Tianma Micro-electronics, a firm based in China.

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Related: HTC U Massive Leak: Full Specifications, All Features Revealed As Release Draws Near

HTC’s poor performance in Asian markets is no surprise as the Taiwanese company has been going through a struggling phase for a few years across the world. HTC has attempted to ramp up its shipments in China and global markets in Q1 this year as there is stiff competition from Chinese brands like Huawei, OPPO, Xiaomi, Vivo and Gionee. In December 2016, Acer, another Taiwanese firm, had announced its back out from smartphone business in India as It sold only 30,000 units in 2016.

ASUS is expected to launch its ZenFone 4 series soon. HTC has confirmed that it will be launching six to seven smartphones in this year. Recent rumors hint that HTC is likely to launch HTC U flagship phone later in this month.  Will the upcoming phones help ASUS and HTC in improving market performance? Do let us know your views by adding comments below.

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  • Saku

    These Taiwanese brands are too expensive especially HTC. I can’t even comprehend how did that company priced a phone with Helio P10 at almost a half a grand. It’s just plain stupidity if you ask me. ASUS on the other hand, is being influenced by HTC’s aggressive pricing. No wonder they lost customers in the process.

    • Ashoaib

      Its true. Totally agreed. HTC is over priced for what it offers. There are plenty of other brands with better specs in the same price range.

      However, in my view, Asus is still a good option. Zen phone 3 deluxe​ is a very good phone with a very good audio and not overly priced like htc 10.

      • Wolvie

        You better check asus latest ASUS Zenphone released and pricing.Asus price is not cheap.

        Zenphone lower models actually selling at very high price compare to other reputable china brands like Xiaomi, Oneplus, Meizu, LeECO, etc

        Probably Asus saw that those China brand like Huawei, Oppo, Vivo, etc can sell their lowend products with high price and they try to copy in hope to get a high profit. Now Asus can go to hell with their high price.

  • Amit

    It is just due to poor pricing by these companies that they are losing market share.

    • Pranav

      they spend more money to manufacture but quality of the all the smartphones remain same, they must redude the manufacture cost some how.