Taiwanese smartphone maker Asus has announced the exit of its CEO Jerry Shen. The reason that has been given for his exit is ‘comprehensive corporate transformation’ and the company will reportedly be moving to a new co-CEO structure. The consumer electronics maker would also be changing its mobile strategy to focus on premium and niche smartphones.
Asus‘ current CEO Shen’s departure would be effective starting January 1 and two new co-CEOs who would succeed him are SY Hsu and Samsun Hu. While Hsu is currently the general manager of the Asus’ PC division, Hu is the current general manager for the company’s global customer services department.
Speaking of Jerry Shen, after he leaves Asus, he will be going to iFast, which is an AIoT startup. He is taking up the role of Chairman and CEO at the company.
Asus has spoken to Engagdet China regarding the overhaul in management that is set to take place and also announced its ‘mobile transformation plan’. Under the ‘mobile transformation plan’, Asus will be focussing on power users and e-sports fans as its targeted customer base.
It has been reported that the Taiwanese company has reportedly set aside an expected loss of TWD 6.2 billion, which becomes approximately Rs 1,400 crores after conversion. It has been said that the said value covers inventory losses, amortisation of royalties, and organisational adjustment fees.
According to Engadget China, Asus’ board of directors will be investing in AI, IoT, B2B, and commercial applications in order to diversify themselves away from the consumer-centric business. The company will reportedly also be using TWD 10 billion (approximately Rs 2,300 crores) for mergers and acquisitions in near future.
Asus’ Chairman Jonney Shih said to BNext that the company is undergoing this diversification as the market has started focussing on fields like AI and IoT. He went on to say that he will personally be supervising the new mobile business and will work closely with the two new co-CEOs in order to get the new market plan into operation. He was quoted saying that the global smartphone market is a “bloody battlefield” as OEMs are always on the lookout to cut some cost they can to gain some share.