Asustek Computer just launched the X002 TD-LTE smartphone under its second brand Pegasus in the China market and aims to ship more than 15 million ZenFone series and Pegasus series smartphones in the China market in 2015, according to Taiwan-based supply chain makers.

X002 features Android 4.4, MediaTek MT6732 64-bit 1.5GHz quad-core processor, a 5-inch 1,280x720 IPS touch screen, 2GB RAM and 16GB ROM, an 8-megapixel rear camera and a 5-megapixel front camera, a weight of 140g, and is available for sale at a contract-free retail price of CNY799 (US$129), the sources said.

Asustek expects to ship 8.0 million ZenFone smartphones globally in 2014 and aims to ship 40 million units, including Pegasus series in the China market, in 2015, the sources noted.

As Asustek is expected to lose NT$2.0-3.0 billion (US$63.5-95.2 million) for smartphone business operation in 2014, the company will face serious challenge to turn into profitability in 2015 because specifications of its smartphones are in an uptrend but the average retail price will not significantly rise, the sources indicated. China-based smartphone vendor Xiaomi Technology, Asustek's main competitor, can be a reference case for Asustek, the sources said. Xiaomi shipped over 4.3 million smartphones globally during the first three quarters of 2014 and became the largest vendor in the China market as well as the third largest one in the global market in the third quarter, but its profitability was far short of original expectations due to relatively low sales prices, the sources pointed out.