Asustek Computer has launched its second-generation ZenFone smartphone in China with pricing starting at CNY1,299 (US$209) and the device is expected to pose a strong threat to China-based Xiaomi's flagship product, according to a Chinese-language Economic Daily News (EDN) report.

For 2015, Asustek is looking to ship 25-30 million smartphones worldwide and sell four million units in China to become a top-10 smartphone vendor in the country, the report noted.

Currently, Xiaomi is selling its 5.7-inch flagship smartphone at CNY2,299, while the second-generation ZenFone is priced at CNY1,299, CNY1,699 or CNY1,999 depending on specifications, the report said.

To ensure stable supply, Asustek is looking to raise its supply chain capacity to above three million units per month by the end of March, the reported added.