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Asus Adopts Elite Strategy and Temporary Halts Development of the ZenWatch
By Korbin Lan
Published: May 23,2017
TAIPEI, Taiwan - In order to improve profits, Asus has recently begun an “elite strategy” to reorganize their flagship product lines and discontinue products which are lacking in competitiveness while placing emphasis on highly profitable products. They are doing this in hopes that concentrating their efforts will enable all of the products that they launch to be hot selling items. Part of this strategy entails temporarily halting the development of the ZenWatch smart watch, and this year Asus will launch the fourth-generation ZenFone4 smart phone while reducing the number of different styles.
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As of late, Asus has a new internal strategy which entails reviewing new product lines and discontinuing products which do not make money and are lacking in economic scope. This includes the possible halting of the development of the ZenWatch and only continuing to sell the ZenWatch3.
In 2014 Asus launched the first-generation ZenWatch, which was equipped with the Google Android Wear operating system. However, in the years that followed the smart watch market did not develop as well as had been anticipated, and Asus only sold a monthly average of 5,000 to 6,000 ZenWatches.
Asus CEO Jerry Shen expressed hopes that with Asus' new strategy all of the products that they launch will be hot selling items and that they will reach their goal of product optimization. In addition, they will focus on market sales. Taking mobile phones as an example, honing in on twenty different types is a large enough scope for potential in the major markets, and they will centralize their marketing resources.
(TR/ Phil Sweeney)
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