Citing waning sales and intensifying competition over the past few years, Asustek Computer Inc (華碩) chief executive officer Jerry Shen (沈振來) yesterday tendered his resignation to make way for a new leadership structure consisting of two CEOs, S.Y. Hsu (許先越) and Samsun Hu (胡書賓), who formerly served as vice presidents at the company.
The company’s board of directors has approved the leadership shake-up, which is to take effect on Jan. 1.
Shen is to lead iFast (創捷前瞻), a new artificial intelligence and Internet of Things start-up focusing on finding new applications for products ranging from smartphones to smart home appliances.
Photo: CNA
Asustek chairman Jonney Shih (施崇棠) is to remain in his position.
The arrangement is aimed at overhauling the culture at Asustek, Shen said, adding that he would have much more room to innovate at the helm of a small start-up.
Asustek said it plans to take a 30 percent stake in iFast, investing up to NT$10 billion (US$324.15 million), and hopes to become a notable player in the field in three year’s time.
The company also announced a major overhaul of its smartphone business to focus on gamers and power users, following a decline from its heyday when it found success in products such as Eee PC laptops, the Nexus 7 tablet and Zenbook laptops.
However, the restructuring would result in a one-time loss of NT$6.2 billion to account for loss of inventory, royalties, production costs and organizational adjustment expenses, it said.
While the expense would push this quarter’s results into the red, the company would remain profitable this year and be able to meet its cash dividend, Asustek chief financial officer Nick Wu (吳長榮) told a news conference.
“We are going back to our roots as a premium brand and are moving to a higher price tier,” Shih said.
Shih said that the company’s focus is on creating compelling products with excellent quality, and that one of its first steps is to build on the warm reception of its ROG gaming smartphone, and leverage its Republic of Gamers brand and gaming solutions.
“We are aiming to match the Apple iPhone and Google Pixel in terms of user experience,” Shih said, adding that the high prices of those models have not helped their sales, as the global smartphone market is becoming increasingly saturated.
Consumers should begin to see the company’s revamped product lineup around the middle of next year, Shih said.
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