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Asustek depending on online sales to transfer handset business

  • Author:Abby
  • Release on :2015-06-24

The establishment of Asus Digital International (ADI), an e-commerce joint venture, by Asustek Computer and online shopping operator Uitox, has helped Asustek ramp up its smartphone shipments and also make a turnaround of its handset business, according to industry sources.

ADI, which was set up in March 2014 with Asustek holding a 80% stake, has operated an online sales platform, modeled after China-based Xiaomi Technology's e-marketing strategy, to promote Asustek smartphones, particularly in Taiwan and China.

Asustek announced recently that it shipped over 1.5 million smartphones in May and that its handset business started generating profits in the month. The vendor said it also expects its smartphone shipments to reach over two million units in June.

Asustek's handset business unit will definitely swing back to profitability in 2015 if the company realizes its goal of shipping 17-25 million smartphones in the year, said the sources.

The increased smartphone shipments through ADI have helped Asustek strengthen its bargaining power for the purchase of handset parts and components, as well as extract more profits from physical channel operators, indicated the sources.