Follow us on Twitter
Follow us on FacebookASUS Chief Exec Jerry Shen Steps Down
@ 2018/12/14ASUS on Thursday announced the resignation of its long-time CEO, Jerry Shen. The step down follows a major change in the company’s smartphone strategy and precedes the company’s switch to a co-CEO management model. Meanwhile, Mr. Shen will be moving on to lead iFast, an AI+IoT startup, which will be partly funded by ASUS.
Starting from January 1, 2019, ASUS will be headed by two people: SY Hsu, who is currently heading up the company’s PC business, and Samson Hu, who is leading customer care services. The board of directors reportedly hopes that the co-leadership structure will enable the company to better compete against rivals and achieve its goals.
The co-CEOs have completely different skill sets and will therefore bring a unique combination of expertise to the table while avoiding internal competition. Just to put the particular people into context: SY Hsu certainly knows how to build products and how to manage the supply chain, whereas Samson Hu knows how to make these products more appealing to the customer and build competitive services. Considering the potential for disruption in the PC market because of the US-China trade feud, ASUS and other companies need to alter their supply chains and make their products more attractive to buyers because at some points they may have to increase their prices, which may lead to a lower demand.
In addition to the management reorganization, ASUS is shifting its smartphone strategy, as announced in mid-November. From now on, the company will focus on specialized smartphones aimed at gamers and ‘power’ users, as opposed to focusing on mainstream handsets. The company apparently wants to address gamers and other users with unique needs (and currently do not have a lot of choice) with its upcoming smartphones, though ASUS needs to detail its strategy going forward. The company will take a one-time charge of NT$6.2 billion (~$201 million) to cover losses from inventory, various costs, advance royalties, and other expenditures incurred by the strategy shift. The charge will affect the company’s profitability for the year, which will be considerably lower than expected, all of which weighs on Jerry Shen's tenure with the company.
Starting from January 1, 2019, ASUS will be headed by two people: SY Hsu, who is currently heading up the company’s PC business, and Samson Hu, who is leading customer care services. The board of directors reportedly hopes that the co-leadership structure will enable the company to better compete against rivals and achieve its goals.
The co-CEOs have completely different skill sets and will therefore bring a unique combination of expertise to the table while avoiding internal competition. Just to put the particular people into context: SY Hsu certainly knows how to build products and how to manage the supply chain, whereas Samson Hu knows how to make these products more appealing to the customer and build competitive services. Considering the potential for disruption in the PC market because of the US-China trade feud, ASUS and other companies need to alter their supply chains and make their products more attractive to buyers because at some points they may have to increase their prices, which may lead to a lower demand.
In addition to the management reorganization, ASUS is shifting its smartphone strategy, as announced in mid-November. From now on, the company will focus on specialized smartphones aimed at gamers and ‘power’ users, as opposed to focusing on mainstream handsets. The company apparently wants to address gamers and other users with unique needs (and currently do not have a lot of choice) with its upcoming smartphones, though ASUS needs to detail its strategy going forward. The company will take a one-time charge of NT$6.2 billion (~$201 million) to cover losses from inventory, various costs, advance royalties, and other expenditures incurred by the strategy shift. The charge will affect the company’s profitability for the year, which will be considerably lower than expected, all of which weighs on Jerry Shen's tenure with the company.
