Asus targets 7 to 8 million smartphone shipments in 2014

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Asus targets 7 to 8 million smartphone shipments in 2014

But here's why analysts cast doubts on this "aggressive" goal.

August 27, 2014

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But here's why analysts cast doubts on this "aggressive" goal.

Asus' Padfone 2 smartphone

In what is being called an “aggressive” target by analysts, Asus has set a goal of shipping between 7 and 8 million smartphones in 2014, despite shipping only 1.2 million in the first half of the year. The company expects 2.6 million smartphones to be shipped in 3Q, and targets between 3 and 4 million in 4Q.

The company shipped 2.5 million tablets in 1H, and has targeted shipments of another 2.6 million units in 3Q. There is significant concern, however, about the aggressiveness of these forecasts. New entrants to export markets–specifically Xiaomi–are a significant concern for Asus’ emerging market exports.

In addition, concerns about lack of differentiation in the product line means that margins will be impacted. KGI Research estimates that Asus’ tablet average selling price decreased 25 percent since 1Q.

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