ASUS on Thursday announced the resignation of its long-time CEO, Jerry Shen. Down the step follows a significant shift in the organization’s smartphone plan and simplifies the organization’s switch into a co-CEO management version. Meanwhile, Mr. Shen will probably be moving on to direct iFast, an AI+IoT startup, which is partially funded by ASUS.

Beginning from January 1, 2019, ASUS is going to be led by two individuals: SY Hsu, who’s currently heading up the organization’s PC business, and Samson Hu, who’s leading customer support services. The board of supervisors reportedly hopes the co-leadership arrangement will permit the business to better compete against competitors and attain its objectives.

The co-CEOs have entirely different skill sets and will consequently bring an exceptional mix of experience to the table whilst avoiding internal contest. Merely to place the specific people into context: SY Hsu surely knows how to construct products and how to handle the supply chain, whereas Samson Hu knows how to make these products more attractive to the client and build competitive solutions. Taking into consideration the possibility of disturbance in the PC marketplace due to their US-China trade feud, ASUS and other businesses will need to change their distribution chains and make their goods more appealing to buyers since at certain points they could need to raise their costs, which might result in a decrease need.

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Along with this management reorganization, ASUS is altering its own smartphone plan, as declared in mid-November. From today on, the business is going to concentrate on technical smartphones geared toward players and ‘power’ users, instead of focusing on mainstream ovens. The business apparently wishes to tackle players and other customers with special needs (and now don’t have a great deal of choice) using its forthcoming smartphones, though ASUS should detail its strategy ahead. The business is going to have a one-time fee of NT$6.2 billion (~$201 million) to pay losses from stock, various expenses, advance royalties, and other expenses incurred by the plan change. The fee will influence the organization’s profitability for the entire year, which is substantially lower than anticipated, all which weighs Jerry Shen’s tenure with the business.

If it comes to smartphones, ASUS already attempted unorthodox approaches for this particular market: the organization released a variety of technical handsets in partnership with all Garmin between 2008 and 2010, and then it attempted to marry a smartphone and a tablet computer using its PadFone hybrid 2012 — 2014. Using its ZenFone established in early 2014, ASUS has gained an existence on several different markets in which its own brand was strong for quite a while. On the other hand, the business has found itself between a rock and a hard spot once the rivalry between top brands and brand new entrants such as Xiaomi began to warm up in the last few decades.

Throughout Mr. Shen’s tenure as CEO, ASUS has achieved several goals, introduced several new product lines (ZenBook, ZenPhone, Transformer, Vivo, etc.), also eventually become Taiwan’s most precious international manufacturer. While he’s often credited as the father of ultra-affordable Eee PCs back in 2006, he’ll also be remembered as the guy who divide ASUS to three firms. Soon after getting the CEO of ASUS in 2008, he divide the tech giant to three separate companies: ASUS, concentrated on branded goods; Pegatron, concentrated on contract manufacturing of different electronic equipment; and Unihan, concentrated on contract manufacturing of varied non-PC components.

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Following 25 years using ASUS, Jerry Shen will direct iFast, a startup developing IoT products including AI (an AIoT startup, as ASUS sets it). ASUS plans to purchase a 30% stake in the organization and devote NT$10 billion (US$324.22 million) on growing its AIoT jobs in the next several years.

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