Lenovo will try to raise the ASP of its smartphones by ramping its share in the mid-range to high-end segment by optimizing on the brand image of Motorola, while fellow company Coolpad will roll out more 4G LTE models to lift its ASPs, according to sources in Taiwan's supply chain.
Currently, the ASPs of international brands range from CNY2,000-4,000 (US$320-640) compared to CNY800-2,000 of local brands in China, the sources indicated.
However, Lenovo's and Coolpad's ASPs stand only at CNY800-900, compared to CNY1,000-1,400 for Huawei and ZTE, CNY1,800 for Xiaomi Technology, and over CNY2,000 for Oppo and Vivo, indicated the sources.
Lenovo has said that it aims to launch mid-range to high-end smartphones under the Motorola brand for sale in more mature markets, while boosting sales of entry-level to mid-range models under the Lenovo brand in emerging markets.
Since Motorola has been focusing on entry-level models such as the Moto E and Moto G, recently, it remains to be seen if Lenovo will be able to switch Motorola's focus to mid-range and high-end models, commented the sources.
Lenovo shipped 50 million smartphones in 2013 and targets to ship 80 million units in 2014.
Coolpad's smartphone shipments reached 37.2 million units in 2013 and total shipments are expected to top 60 million units in 2014, including 40 million 4G LTE models, the sources indicated.
However, Coolpad has recently lowered the prices of its 4G models to below CNY1,000, which may affect its efforts to shore up the ASP of its smartphones, contended the sources. |