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As the mobile device market is no long seeing strong growth, Asustek Computer has been reorganizing its loss-making tablet business since the first half of 2016, while Gigabyte Technology is also planning to adjust operations for some of its poorly-performing subsidiaries such as Gigabyte Communications, which mainly handles the company’s GSmart smartphone products, and Gigazone International, which handles PC and handset peripheral products.
Gigabyte pointed out that the company will continue to provide maintenance services to products that have been sold by the two subsidiaries.
Gigabyte is planning to stop all related R&D and sales at these subsidiaries, and relocate their employees to other business departments or lay them off. Gigabyte will shift the resources to product lines with better profitability.
Asustek started reorganizing its tablet business in the first half of 2016 and has greatly reduced the number of its new tablet projects as well as tablet shipments in 2016. Since Asustek still has a few hundred R&D and sales staff in its tablet department, Asustek has been trying to relocate them to new businesses such as virtual and augmented reality (VR/AR) and smartphone and the process is expected to be completed by the end of first-half 2017.
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