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進入《TAIPEI TIMES》 High hopes, mixed outlook for ZenFone
South Korean actor Gong Yoo yesterday holds the new ZenFone 4 at a product launch in Taipei. Photo: Hu Shun-hsiang, Taipei Times
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By Lauly Li / Staff reporter
Asustek Computer Inc （華碩） yesterday launched its flagship ZenFone 4 series in Taiwan and six other regional markets, as the company steps up its efforts to revive the momentum of its loss-making smartphone business.
“The three out of four models of ZenFone 4 series will be first available in the Taiwanese market from today [yesterday], and we will soon expand it to more markets,” Asustek chairman Jonney Shih （施崇棠） told a news conference in Taipei.
The product launch was live-streamed in Taiwan, Hong Kong, Indonesia, Malaysia, the Philippines, Thailand and Japan.
Asustek said it holds high expectation for sales of the ZenFone 4 series, as the company did not launch any handsets in the first half of the year.
The company’s mobile phone shipments in the first half were disappointing, leading to two consecutive unprofitable quarters for the handset business, according to the latest results released last week.
Total net income plunged 31.64 percent year-on-year to NT$5.66 billion （US$186.7 million） in the first half, with earnings per share down to NT$7.59 from NT$11.06, data showed.
To drive up its ZenFone sales, Asustek has reportedly spent nearly NT$60 million, half of the firm’s annual marketing expenses, to hire South Korean actor Gong Yoo as the brand ambassador for the Asia-Pacific region, excluding China.
Gong’s presence at the news conference drew more than 1,000 fans, including some from the Philippines and Thailand, Asustek said, adding that about 500 foreign and local reporters attended the event.
Asustek chief executive officer Jerry Shen （沈振來） on Friday last week forecast shipments of its mobile products would climb by 20 to 30 percent this quarter from a quarter earlier on the launch of the ZenFone 4 and in light of Gong’s popularity.
Shen said Asustek is optimistic that its smartphone business could be profitable throughout next year, excluding the Chinese and Indian markets, as the firm is centralizing its resources and shortening the time to market of its products.
Yuanta Securities Investment Consulting Co （元大投顧） analyst Calvin Wei （魏建發） said he was conservative about the short-term outlook for Asustek’s smartphone business.
“The South Korean actor’s popularity in Asia might help the promotion of Asustek’s new handsets, but it is questionable whether his fame will translate into actual product sales,” Wei said by telephone.
Wei said he is doubtful that Asustek’s smartphone business could swing back to profitability next quarter, given intense competition in the handset market in the second half of this year, when Apple Inc, Samsung Electronics Co and Chinese brands are all to launch new smartphones.
Daiwa Capital Markets analyst Steven Tseng （曾緒良） on Friday last week said in a note that he estimated Asustek’s increasing smartphone sales would benefit the firm’s profitability this quarter.
However, he said Asustek is no longer considered a major client by parties in the smartphone supply chain and the company might encounter component supply issues.
The company’s stock price lost 0.2 percent to close at NT$243.5 in Taipei trading yesterday, ahead of the firm’s product launch.
新聞來源：TAIPEI TIMES
