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ASUS CEO Resigns as Company Shifts Mobile Focus To Power Users (engadget.com)

Earlier today, ASUS announced that long-time CEO Jerry Shen is stepping down ahead of "a comprehensive corporate transformation" -- part of which involving a new co-CEO structure, as well as a major shift in mobile strategy to focus on gamers and power users. From a report: In other words, we'll be seeing more ROG Phones and maybe fewer ZenFones, which is a way to admit defeat in what ASUS chairman Jonney Shih described as a "bloody battlefield" in his interview with Business Next. During his 11 years serving as CEO, Shen oversaw the launch of the PadFone series, Transformer series, ZenBook series and ZenFone series. Prior to that, Shen was also credited as the main creator of the Eee PC, the small machine that kickstarted the netbook race in 2006.

58 of 100 comments (clear)

  1. Co-CEO? by buggiebee · · Score: 1

    Co-CEO? That seems a little strange, I wonder how that will work out.

    1. Re:Co-CEO? by Desler · · Score: 4, Funny

      RIM did it for 2 decades and it seemed to work out just fine.

    2. Re:Co-CEO? by williamyf · · Score: 1

      Huawei has a "rotating CEO" structure. The current CEO is locked in Cananda, with a pending extradition request to the USoA.

      As Desler pointed out, RIM had that sort of structure for decades, and is not uncommon in the CEO/COO structure, ho have them work as CO-CEOs for all intent and purposes.

      How that works out deoends on the company culture and the people they choose as CO-CEOs, not as the CO-CEO structure per se.

      --
      *** Suerte a todos y Feliz dia!
    3. Re:Co-CEO? by bill_mcgonigle · · Score: 1

      RIM's ecosystem was so bad that a book was even written on how to fix it - The Innovator's Solution. The book told RIM how to fix their stuff. They didn't, but Steve Jobs read the book.

      --
      My God, it's Full of Source!
      OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
    4. Re:Co-CEO? by Seven+Spirals · · Score: 1

      It sounds hilarious. I'd love to see two CEO psychopaths having a retard slap-fight. I'd buy the pay-per-view.

    5. Re:Co-CEO? by perpenso · · Score: 1

      Rome did it for 500 years ...
      https://en.wikipedia.org/wiki/...

    6. Re:Co-CEO? by Opportunist · · Score: 1

      In our company it's more a "revolving door CEO structure".

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    7. Re:Co-CEO? by Opportunist · · Score: 1

      You don't wish that on your worst enemy. You know what happens to you when a CEO makes a mistake? Yes. YOU get fired.

      Now imagine two CEOs that don't like each other where one considers everything the other one does or makes others do a mistake. No matter what you're told to do, you're damned if you do, you're damned if you don't.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  2. Apple led the way by SuperKendall · · Score: 4, Insightful

    Apple realized long ago a battle at the low end is one that leaves no victors.

    It's a good idea to focus on finding and winning over people who are willing to pay for extra power and features. The other benefit of that approach is you are likely to find more loyal users, if you go chasing after people who ignore specs and value and just chase the cheapest model, they will have zero brand loyalty and may well not purchase your phones again when upgrading.

    To win over repeat customers means putting money into design and build that knock you right out of contention at the low end of the market.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
    1. Re:Apple led the way by fluffythedestroyer · · Score: 1

      If you think that design is what a company needs to win loyalty you're wrong. Thats not what made Apple famous let say.

    2. Re:Apple led the way by SuperKendall · · Score: 1

      Except for the victors it leaves, of course. If there were no victors there would be no low end.

      Survivors are not victors, but they remain.

      Ignoring the vapid, meaningless SuperKendall rhetoric for a moment

      Wow there was actually a part you didn't consider vapid, or your post would have ended there! High praise indeed!

      it's also interesting to point out that Apple's initial focus in their turnaround was the low end iMac series.

      "low end iMac"

      BWA HAHAH HA AHA HAH AHAH AHAAHH AHA AH AHHA AAH AH !!!!

      At the time iMacs came out *I* sure could not afford them, as much as I thought they looked awesome.

      Sorry but I couldn't read any more of your post after that, the tears in my eyes and sheer absurdity of thought made it impossible to take anything further you said seriously.

      --
      "There is more worth loving than we have strength to love." - Brian Jay Stanley
    3. Re:Apple led the way by Cajun+Hell · · Score: 1

      a battle at the low end is one that leaves no victors.

      When WalMart (and Amazon) find out that low margins combined with high volume leads to zero profit, they're gonna be so pissed. Your observation finally explains why WalMart disappeared from the economy, a death by a thousand mom'n'pop cuts.

      --
      "Believe me!" -- Donald Trump
    4. Re:Apple led the way by rtb61 · · Score: 1

      Right now the product that is taking the lead, the one product that can really set you apart from the rest of the mob, the product that Apple has already started selling, the soon to become the number one product, PRIVACY. It's the one product where you can actively fuck over all the major competitor, except of course Apple who has already gotten there.

      --
      Chaos - everything, everywhere, everywhen
  3. Netbooks by Voice+of+satan · · Score: 4, Interesting

    His netbook move was not vain.

    I still have one. 32 bits celeron working OK with a small Linux distro. I use it as a calculator for lab related stuff. Back in the day, a Linux compatible portable computer sold for cheap without the Microsoft tax was big news.

  4. Thank god by melted · · Score: 1

    The dude was basically the polar opposite of Steve Jobs. Cringeworthy mobile projects, cringeworthy presentation of said products. I hope they appoint someone better than that. Their laptop lineup is second to none right now. I'm posting this from an X1 running Linux.

  5. No differentiation by Nexus7 · · Score: 1

    Everyone's making the same phone - ever increasing screen size, gimmicks like fingerprint reader front or back or under screen, everyone's removing microSD slots, headphone jacks, using the same set of LCD/OLED panels and other components. If they don't want to make something that caters to smaller but real markets (outdoor activities, smaller phones, and in this case, gamers), then they're competing with bigger companies that can throw $$$ into buying customers. So I guess this is good for them... except they aren't ever going to make a phone that's as good as even a gaming laptop... so it is really just for mobile power gamers. I'd have gone for a bigger or multiple niches.

    1. Re:No differentiation by Lanthanide · · Score: 2

      It's a really hard tightrope to walk going after a niche, though, because your sales will be less so it's really important you cut costs. If you end up with lower quality components as a result, then the niche you're targeting will probably ignore your offering and buy one of the other phones that fits their niche well-enough. And if you don't compromise the quality of the components, you need to ensure you don't spend too much on marketing - but then if you don't spend on marketing you may not make the sales required to justify the product, etc.

      Vicious circle.

    2. Re:No differentiation by lordlod · · Score: 2

      Shooting for a niche phone is a really high risk move.

      There are strong economy of scale effects from going with the pack. The screen suppliers all have the screen size and type you are after. Components have been certified and specially designed. You can also leverage existing designs to reduce your time to market.

      This ties into costs. Component costs are $200 - $300 USD for value to high end phones, this will rapidly increase if you do anything custom. Then add in your design costs and profit, divided across the number of units. Finally double it for the retail price.

      So a value phone with some unique outdoor features and form factor designed from scratch probably has to retail for $1000 USD and sell half a million units.

      Much better to take a cheap mass produced standard Android design from generic factory 67. Get them to swap out the back panel and put it in a rubberised case. Costs are lower, risks are lower, time to market is much faster. And this is basically what you see if you search for a rugged phone.

  6. Comment removed by account_deleted · · Score: 2

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  8. Rad the summary again? by SuperKendall · · Score: 1

    Asus is going after higher end mobile users, I am expelling why so people like you might understand why.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
  9. I hate Asus Laptops Because by fluffythedestroyer · · Score: 2

    From a computer technician point of view (and my personal opinion) they are SO FUCKING BADLY designed. All the asus laptops that I worked with just took more time for nothing and it felt like all of them could break easily. they material was made cheap.

    I mean, just to replace a hard drive was a nightmare imo. I had to remove the entire bottom plate and sometimes the keyboard as well and this is just to replace to access it. Jesus Christ, take a look at the lenovo laptops and at least copy their design to access parts that should take 20 seconds to replace ffs. ()

    1. Re:I hate Asus Laptops Because by Opportunist · · Score: 1

      Sorry, I cannot second that. I, too, have an Asus notebook. It's now about 3 years old and still running very well, no signs of ever going to fail. I did swap the (secondary) HD for an SSD and it went without a problem. Open tray, pluck old one out, stuff new one in, boot up.

      I do also know Lenovo notebooks and to be honest, I fail to see the huge difference in convenience. What I do see, though, is a difference in price and amount of crapware...

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    2. Re:I hate Asus Laptops Because by fluffythedestroyer · · Score: 1

      its not the fact that an asus laptops years of running good. Its rather when it fails. When you need to change parts. thats where the problem kicks in. The things I need to do in order to change a hard drive or memory is more work and troublesome than other laptops. That could be easily fixed with some tweaks in the laptop case design. Thats what I meant exactly. For lenovo, take a look at some lenovo laptops and asus and you'll see the difference. With Lenovo, theres usually a bay to open and you can switch hard drives very easily; same with memory. Asus, nope. fuck you. you have to remove the keyboard, remove all screws on top and bottom, remove some screws for this and that. I just hate it. But hey, performance on asus, it runs great though. no problem there. its only the fixing thats the problem

  10. Comment removed by account_deleted · · Score: 1

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  12. You do realize Apple doesn't make their products? by Solandri · · Score: 4, Informative

    The Macbooks are (currently) made by Quanta. They're an ODM - original design manufacturer. That's like an OEM, except they also design the product. They're the ones who came up with such innovations like hogging a unibody laptop chassis out of a single solid piece of aluminum, not Apple. Slashdot had an article describing how they bought the CNC milling machinery, were playing around with hogging out aluminum billets, and pitched the idea to Apple. Quanta also makes laptops for pretty much every other laptop brand out there, so no, Apple doesn't have a monopoly on quality. I always tell buyers that about the only thing the brand name tells you is what sort of aftermarket support you'll get.

    Asus also started off as an ODM too. They made the old Powerbooks and the plastic Macbooks, as well as a few other Apple devices. They spun off their ODM division as Pegatron (the company founder likes Pegasus - both company names are derived from it) a decade ago due to complaints from their customers about conflict of interest (they also sold laptops under the Asus brand). Likewise, the iPhones are made by Foxconn, which is probably more widely known due to PR managers at Apple dumping blame for all the bad things that happen to iPhones onto Foxconn in order to preserve the Apple brand name.

    The only hardware Apple makes is their processor. Everything else is made by other companies. Memory by Samsung and SK Hynix. Flash storage by Samsung and Toshiba. Screen by Samsung and LG, camera by Sony, etc. Apple just hires an ODM and gives them the general design specs they want it to meet. The ODM makes the product, buying parts that are available to all other brand names, and packages them together into a whole. Just like every other brand name. There is no magic unicorn dust inside. Sorry to burst your bubble.

    What Apple figured out is the Gucci effect. If you develop a strong brand name, people will pay extra to buy it regardless of features or quality.

  13. consolidation in the computer market by williamyf · · Score: 2

    The client computer market (think desktop, Laptop, workstation, gamers, ultrabook, etc) is ripe for consolidation. Only Dell, HP Ink and apple, have decent margings there (tow of them because economies of scale, the other because is able to charge a premium for the product, this written on a Macbook Air).

    A consolidatation of players is long overdue. In japan, is already happened. NEC sold its client computer arm to Lenovo. Fujitsu separated their PC arm (which itself was the merger of fujitsus and Siemes client computing arm), So did toshiba. Sony divested the Vaio Group (low sales and earnings) and that was acquired by a private equity group which in turn tried to merge the three of them to no avail. Fujistu tired of waiting and flogged the whole thing to Lenovo...

    Asus shoud follow suit and merge, perhaps with arch-nemesis Acer. God knows both companies need the economies of scale to make this work.

    Failing that, any other of the top 7 companies will do. in the Client PC game, economies of scale are one of the most important factors, and short of Dell, HP and Lenovo, no one has enough economies of scale to do good in that game. Either merge on your own volition, or be absorved after a Chapter 7 , chapter 11 or administration proceedings

    Just my two cents.

    --
    *** Suerte a todos y Feliz dia!
    1. Re:consolidation in the computer market by HornWumpus · · Score: 1

      Asus already assembles about half the no name laptops under contract. That's where they started.

      They make a lot of parts, but nobody makes everything.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    2. Re:consolidation in the computer market by williamyf · · Score: 1

      Nope, pegatron (a spinoff of asus, but completely separated company) assembles half the no name laptos around.

      An user by the name solandry explained it very well on this same thread. Failing that, google is your friend.

      --
      *** Suerte a todos y Feliz dia!
    3. Re:consolidation in the computer market by HornWumpus · · Score: 1

      A separate company who's biggest owner is Asus. Which WAS Asus until Asus decided to push their brand in the USA and the EU.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    4. Re:consolidation in the computer market by Opportunist · · Score: 1

      So what's gonna be left in the Laptop market is Dell, HP and Apple? In other words, you won't be able to buy a laptop anymore that works, isn't loaded with crapware to the brim or doesn't costs a fortune? Or has all three awesome qualities?

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    5. Re:consolidation in the computer market by williamyf · · Score: 1

      Nope, after my proposal, you could still buy a Lenovo (NEC-Fujitsu), Toshiba, Vaio (not sony but still), Asus-Acer, system76, clevo, etc. Actually, in super saturated markes (like PCs), where economies of scale play a *very* important role (like PCs), while in the short term consolidation leads to less options, in the long term, leads to _more_ options than would have been posible without such consolidation, because, once a player goes throug capter 7, chaper 11, or administration, is gone man. two small players fused have more chance of survival in such markets, than both of them going at it alone. and notice I said both of them, not either. The probability of *both* small players going out if unmerged is higher than the porbabily of the merger entity continuing.

      Of course, mergers are not a panacea, and carry their own headaches. But in this kind of markets, is the right way to go.

      --
      *** Suerte a todos y Feliz dia!
  14. Worked well for about 500 years ... by perpenso · · Score: 1

    It sounds hilarious.

    It actually worked well for the Roman *Republic* for nearly five centuries.
    "A consul held the highest elected political office of the Roman Republic (509 to 27 BC), and ancient Romans considered the consulship the highest level of the cursus honorum (an ascending sequence of public offices to which politicians aspired).
    Each year, the citizens of Rome elected two consuls to serve jointly for a one-year term. The consuls alternated in holding imperium each month,[citation needed] and a consul's imperium extended over Rome, Italy, and the provinces. However, after the establishment of the Empire (27 BC), the consuls became mere symbolic representatives of Rome's republican heritage and held very little power and authority, with the Emperor acting as the supreme authority."
    https://en.wikipedia.org/wiki/...

    1. Re:Worked well for about 500 years ... by Seven+Spirals · · Score: 1

      Well, I was joking a bit. I can see the arrangement working in some situations. After all, married couples somehow still decide where to eat out and what movie to go see. I also study Roman history and the Republic is much more interesting to me. The article points out that the situation did falter somewhat in the time of the Republic, but was re-established. Anyhow, I'm not saying having two people lead jointly is a fatal arrangement. It's just that the current type of people who become corporate CEOs strike me as the types who would have an absolute meltdown if they had to share power.

    2. Re:Worked well for about 500 years ... by perpenso · · Score: 1

      On the other hand with a co-CEO role clearly advertised ahead of time perhaps the required sharing is a way to have the more psychopathic go work somewhere else? :-)

    3. Re:Worked well for about 500 years ... by Seven+Spirals · · Score: 1

      Well, that's what I was originally suggesting. Do NOT tell them, then give them a week to work in the same office fighting with the other Co-CEO. Then sell the whole thing as a reality TV show. :-) But seriously, sure, of course, the psycho CEO types would run away quick if they knew they had to share power.

    4. Re:Worked well for about 500 years ... by cheesybagel · · Score: 1

      Sparta also had two "kings".
      https://en.wikipedia.org/wiki/...

    5. Re:Worked well for about 500 years ... by perpenso · · Score: 1

      Cool, thanks

    6. Re:Worked well for about 500 years ... by Opportunist · · Score: 1

      Yes, but back then leaders who fucked up at least had the honor to kill themselves.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  15. Apple, 87% of smartphone industry profits ... by perpenso · · Score: 1

    "Apple realized long ago a battle at the low end is one that leaves no victors."

    Except for the victors it leaves, of course. If there were no victors there would be no low end.

    When the most successful party has 87% of the industry profits and the distant second place has 10% then you have one victor and one intact survivor. What could we call the remaining market participants? "Beleaguered?" :-)

    "Apple (AAPL) captured 87% of smartphone industry profits in the fourth quarter, despite accounting for only about 18% of total units sold in the period. ... Samsung came in second in smartphone operating profits with 10% of total industry profits" https://www.investors.com/news...

    1. Re:Apple, 87% of smartphone industry profits ... by TheSunborn · · Score: 1

      Yes, but that quote is wrong, because it compares apples software+hardware with Android hardware only. To get a true comparison you need to add all the profit which google get from the Android OS and bundled software in order to compare with apple. And then the numbers will change, and the true conclusion is:

      The really big money is in software, not hardware. Which is true for almost all electronic commodities. With Intel as the odd thing out.

  16. First order of business: fix Customer Support by ChrisKnight · · Score: 2

    The ASUS sub on Reddit is filled with stories detailing horrible customer support. If the new CEO doesnâ(TM)t put some effort into improvements in that area their time selling expensive components to gamers will not last very long.

    --
    -- This sig is only a test. If this were a real sig it would say something witty. --
    1. Re:First order of business: fix Customer Support by thegarbz · · Score: 1

      Every sub on Reddit is filled with stories of horrible customer support. People rarely go out of their way to comment about good customer support. That's the nature of the beast.

  17. Re:You do realize Apple doesn't make their product by del_diablo · · Score: 1

    So Quanta has the parts and manpower needed to do things like prototype milling? While Apple do not?
    Not that scale is mentioned, which is imported if you need to do 1000 different prototypes in a reasonable time scale.
    Thats the gist of it, at the least as Solandri presents it.

  18. Re:"Failing that, google is your friend." by williamyf · · Score: 1

    I see one fail and I call yours also! Google is not your friend, pal. It ain't your pal, chum. It ain't even your chum, buddy. Calm down. No you calm down. I am calm. Then everybody's calm. REAL calm. The calmest.

    Now I sell all your private information, and you watch an ad. Pow, right in the kisser, friend.

    If I could, I'd mod you funny.

    then I guess Duck-Duck-Go is your friend. Or perhaps Yandex (wink).

    Failing that, please sugest a search engine which is also "our friend"

    --
    *** Suerte a todos y Feliz dia!
  19. Landscape slider keyboard please! by GameboyRMH · · Score: 2

    I'm considering the Asus ROG phone, Razer Phone 2, and Black Shark Helo for my next phone. Make a landscape slider keyboard addon for the ROG phone and you'll get an instant niche of power user customers - all the people still using Droid 4s, Photon Qs and even Maemo phones like the N900.

    --
    "When information is power, privacy is freedom" - Jah-Wren Ryel
    1. Re:Landscape slider keyboard please! by thegarbz · · Score: 1

      and you'll get an instant niche

      Not a good target product in a low margin business.

    2. Re:Landscape slider keyboard please! by TJ_Phazerhacki · · Score: 1

      I was super excited about the ROG Phone, until they said it was going to cost more than a grand. This is a market that is *DEFINED* by annual spec upgrades, and they want me to spend what a good laptop used to cost, every year? No thanks.

      --
      Physics is nothing like religion. If it was, we'd have an easier time trying to raise money!
    3. Re:Landscape slider keyboard please! by GameboyRMH · · Score: 1

      Buying a new one every year isn't mandatory. I've never changed phones after less than 5 years. I might soon, although with a phone that's already over 5 years old...

      --
      "When information is power, privacy is freedom" - Jah-Wren Ryel
  20. Apple 5x revenue on 2/3 the num of downloads by perpenso · · Score: 1

    Apple is a big winner on the software side too. 2/3rds the number of iOS app downloads generates five times the amount of revenue as Android apps.
    https://www.forbes.com/sites/t...

  21. I have a 64 Megabyte SD Card by rsilvergun · · Score: 1

    that's mega, not giga. I can't bear to part with it even though I have no use for it now. It's a wonder of technology and mankind's genius rendered completely obsolete.

    --
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  22. Hey! by nightfire-unique · · Score: 1

    So, hey Asus!

    I've got two thousand US dollars with your name on it, if you can build a genuine flagship Android phone with a removable/replaceable battery, an IP68, resilient plastic body, headphone jack, all sensors, 6+gb ram, the fastest processor money can buy, IR blaster, etc. Big, thick, heavy, with absurd battery life (say .. 8,000mAh).

    There hasn't been an legitimate flagship phone since the Note 3/4 and I've been saving a long time.

    --
    A government is a body of people notably ungoverned - AC
    1. Re:Hey! by Opportunist · · Score: 1

      Ohhh! Wanna have!

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    2. Re:Hey! by Gilgaron · · Score: 1

      You know, we have some Panasonic Toughpad barcode scanners that are geared for business/govt customers but they aren't really any more costly than an iPhone or what have you. I've not really thought about using one as a personal device but I don't see why you couldn't, that'd check a lot of those boxes, waterproof and removable battery and so on. You'd just want one without or with a smaller scanner than ours have since it isn't going to fit nicely in a pant pocket. You never see them advertised outside of trade shows but it seems like there could be some consumer demand?

  23. Re:ROG has been in the toilet by Opportunist · · Score: 1

    I've had a ROG laptop for about 3 years now, no problems here. Can't say much about their support, though, never needed it.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  24. Re:You do realize Apple doesn't make their product by mjwx · · Score: 1

    The Macbooks are (currently) made by Quanta. They're an ODM - original design manufacturer. That's like an OEM, except they also design the product. They're the ones who came up with such innovations like hogging a unibody laptop chassis out of a single solid piece of aluminum, not Apple. Slashdot had an article describing how they bought the CNC milling machinery, were playing around with hogging out aluminum billets, and pitched the idea to Apple. Quanta also makes laptops for pretty much every other laptop brand out there, so no, Apple doesn't have a monopoly on quality.
    I always tell buyers that about the only thing the brand name tells you is what sort of aftermarket support you'll get.

    This is exactly why I tell people not to buy Apple. My work Dell has a melt down, they send me a replacement, I swap the disk and send back the dead one. A Mac has a meltdown and I have to go to an apple store and wait for them to deign to see me.

    What Apple figured out is the Gucci effect. If you develop a strong brand name, people will pay extra to buy it regardless of features or quality.

    Exactly, Apple is a brand. Nothing more, nothing less. If Apple's were priced the same as Dells, and Dell is not a cheap computer brand here in the UK, the Apple would be considered a vastly inferior product.

    Now I do own an Asus as a personal laptop. Its got the same spec as the same year MBP except it only cost £750 instead of &pound:2,600. If anyone is looking for a personal laptop, I couldn't recommend Asus highly enough. My last Asus is still going, the only reason I replaced it was the fact it couldn't run modern games any more (and really, no brand can future proof when it comes to gaming). Maybe not as a work machine as they lack the conveniences of a Dell or Lenovo, like a docking port.

    --
    Calling someone a "hater" only means you can not rationally rebut their argument.
  25. Re:"Failing that, google is your friend." by williamyf · · Score: 1

    I checked, Qwant Closed down in 2013 or thereabouts

    --
    *** Suerte a todos y Feliz dia!