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Smartphone sales looking rosy for Asus, despite PC meltdown

Biz takes refuge from vicious computer market in almost-as-vicious handset market

While the mobe power base is shifting from the traditional players to the new upstarts, with Samsung and HTC suffering at the hands of Huawei and Xiaomi, Asus is having a good time in the good old handset market.

Sales were up from three million in the first quarter to five million in the second and the company is predicting six million in the third quarter.

Tablets were less stellar, with 1.5 million sold in Q1 and a drop – in line with the state of the tablet market – to 1 million in Q2 and a prediction of 1.8 million in Q3.

The company is looking to sell between 17 and 25 million Zenphones in the year.

The numbers are big: operating profit was up seven per cent year-on-year to NT$4.72bn (£94m), while net profit was down three per cent from a year ago to NT$4.66bn (£92.6m).

Second-quarter sales were NT$99.37bn (£1.98bn), a four per cent increase from the previous year. There was a shift from PCs to mobes – in Q1 16 per cent of the products Asus sold were mobiles, but in Q2 it was 22 per cent, with PCs dropping from 67 per cent to 61 per cent.

Asus is looking to play to its graphics card strengths with Alienware-baiting desktops, monitors and laptops, although the mobile market might not be the best safe haven from the bloodbath which is the PC market. ®

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