As part of a restructuring, hardware manufacturer ASUSTeK Computer Inc. (Asus) aims to realign its smartphone division and focus more on models for gamers and power users.
Only gaming smartphones? Asus smartphone models, such as the ZenFone series, have not been able to capture significant market shares due to strong competition among various manufacturers.
This October, with the launch of the Asus ROG Phone, the first model specifically aimed at gamers from its own house was introduced, which the company apparently sees as its future: From now on, it wants to focus “primarily on gamers and power users” in smartphones, as reported by the industry service Digitimes.
This can be read between the lines: While the previous smartphone models from Asus could not achieve significant sales figures, it seems that the Asus ROG Phone is already starting to pay off shortly after its launch – or at least is the most promising. Therefore, a focus on this segment appears logical.
Restructuring initially costly: To cover losses from inventory, write-offs on advance payments, and costs from corporate reorganization, an amount of approximately 178.1 million Euros is to be spent.
As a result, it is expected that Asus’s overall profitability will reach a new low in 2018, since it spun off the contract manufacturer Pegatron in 2010.
What about other Asus hardware? All departments outside of the smartphone division are expected to generate profits in the fourth quarter and keep the company overall profitable. Ultimately, the one-time expenses for restructuring are also intended to make the smartphone division successful in the long term.
Success in gaming notebooks, aiming for new business field
Asus claims to have closed gaps in its gaming product range this year, leading to an increase in the sales of gaming notebooks over the year, with an annual growth of 20 percent.
Expansion goal: For 2019, Asus plans to enhance its marketing in certain markets, such as the USA and the Asia-Pacific region, and expects to take leading positions in both regions.
Change in management: After 25 years with the company and 11 years as CEO and President, Jerry Shen will leave the company at the end of December.
He will be succeeded by SY Hsu and Samson Hu as co-leads in management, who previously led the PC business and the global customer service business, respectively.
AI and IoT as a new pillar: In addition to realigning its smartphone division, Asus aims to become a leading player in the areas of Artificial Intelligence (AI) and Internet of Things (IoT) within the next three years.
To this end, the company plans to invest approximately 287.5 million Euros. In addition to further investments and acquisitions, it is also to take a 30 percent stake in the new company of the departing CEO, which focuses on these areas.
