Asustek Computer has just announced its intention to adjust its tablet operations, by decreasing the number of models produced. This also means that shipments will focus on less overseas markets and a portion of the 1000 employees or so working on tablets will be moved to other areas.
VR, AR and smartphone are the segments that will get the influx of new employees, according to CEO Jerry Shen. Adjustments started in mid 2016 and are planned to finish at the middle of the current year, said Jerry Shen. This comes as the Asustek global tablet shipments started dropping from 12.1 million units in 2013 to 9.4 million units in 2014 and then 5.9 million in 2015.
In 2016 it got even worse, with the drop going to 3.3 million units. 2017 will bring a refocusing on midrange and high end slates, that are priced above $323, an area where ASUS is still performing well. The target shipments are around 3 million units, said the same official. Tablet business profit is expected to happen starting with Q3 2017. I guess we won’t be seeing any new affordable ZenPads any time soon.