Jerry Shen will set up an all-new enterprise to work on AI and IoT, in which AsusTek will buy a 30 percent stake.<\/b>
\n\u201cJerry Shen will set up an all-new enterprise to work on AI and IoT, in which AsusTek will buy a 30 percent stake\u201d
Jerry Shen, the longstanding president and CEO of Asustek Computers, will be stepping down from his present role at the end of 2018. The Taiwanese giant has announced this decision as part of a widespread change of operations and arrangement in the business and management hierarchies and strategies. Replacing him at the helm as co-CEOs will be SY Hsu and Samson Hu, who are presently heading ASUS PC business and global customer care services, respectively. Outgoing ASUS CEO Jerry Shen
According to a DigiTimes report, Shen will set up his own company and venture into the realm of artificial intelligence (AI) and the Internet of Things (IoT) with it. ASUS is also expected to acquire a 30 percent stake in Shen\u2019s new venture, in a bid to improve its own standing in the AIoT (AI + IoT) industry. ASUS is aiming to make crucial changes in its overall strategy and structure of business, and reports state that going forward, the company will primarily focus on AIoT and its mobile business divisions.
In a bid to step up its presence in the AIoT sector, ASUS is said to be ready to invest close to $325 million (over Rs 2,300 crores) to develop its own business in these fields, and use its stature to establish itself in the enterprise and B2B space with these technologies. The company is also reported to be looking at undertaking a few acquisitions in order to establish its presence in AI and IoT-driven technologies.
As for the smartphone business, ASUS is set to realign its strategy and put its focus on gamers and power users. However, the company has not made any mention of the ZenFone line of smartphone for the mainstream audience; this range has gained traction over the last year and just saw the launch of the ZenFone Max Pro M2 and ZenFone Max M2. Furthermore, the company is expected to make a one-time expenditure of about $200 million (about Rs 1,400 crores) to cover costs such as inventory losses and general business reorganisation. The company is also expected to realign some of its staff, as part of the business reorganisation efforts.
ASUS also believes that the new, joint CEO model will be successful, and Hsu and Hu will be able to collaborate and bring their own respective areas of expertise to the post. The change in hierarchy will be effective from January 1st, 2019.
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