AsusTek Computer (ASUS) will release fewer consumer desktops following a sales decline, according to a DigiTimes report from Tuesday. The Taiwanese multinational company has been struggling with consumer-grade desktop models in recent times and is set to focus more on enterprise desktops and all-in-one PCs, as well as its own Republic of Gamers (ROG) mid-range and high-end gaming hardware. The news is not altogether surprising given that shipments of PCs across the world have been declining in recent years, with annual shipments of desktops now being barely above 100 million units. As far as ASUS desktops are concerned, the company sold approximately one million units last year, down from almost three million units shipped in 2015. One of the reasons for the decline in desktop sales is said to be the increasing popularity of notebooks that has made a significant impact on the PC market. The only segment of desktop PCs still achieving slight growth in shipments is that aimed at enterprise and gaming markets.
Desktops are not the only area of concern for ASUS lately, as earlier this month it was reported that the company might be discontinuing its ZenWatch lineup. While sales of Asus ZenFone smartphones and ZenBook laptops have been more satisfactory, ZenWatch wearable devices have not achieved anticipated sales figures, with only five to six thousand units sold in April. This reportedly led the company to consider whether this side of its business is still viable. In fact, the smartwatch business as a whole is struggling, with Motorola previously announcing that its smartwatch development has been put on hold.
ASUS is also facing stiff competition in the smartphone market and is not the only Taiwanese company to face pressure in this arena. A report last month suggested that both ASUS and HTC were struggling because of numerous new device manufacturers that are springing up in China and India, as well as other Southeast Asian countries. Many of the newer smartphone manufacturers are selling their devices at virtually no profit to gain a foothold in the market, so ASUS might also have to change its approach to this market in the future.