ASUS exits smartphone market as chairman confirms AI-first strategy over Zenfone and ROG phones

Here's why ASUS won't make any phones this year -- and maybe never again

Shih stopped short of explicitly saying the company is exiting the smartphone business for good, but the language used and the scale of the pivot don't offer much hope for the future of Zenfones and ROG Phones. At the start of the year, we heard that ASUS is pausing the development of new smartphones. Back then, the company hadn't confirmed the news directly, but now, we finally have a much clearer explanation for why ASUS has decided to stop making new phones. And if you were hoping for a comeback promise, you may be disappointed. According to a report from Inside, citing comments made at ASUS' 2025 Year-End Gala in Taipei (h/t Notebookcheck), Jonney Shih, the company's Chairman, has confirmed that ASUS will temporarily halt new mobile phone launches and fully shift its R&D resources elsewhere. Specifically, ASUS is betting big on AI-powered commercial PCs and "Physical AI," including robotics and smart glasses. During a pre-event media interview, Shih reportedly said that ASUS will no longer add new mobile phone models in the future. He added that the company will continue to take care of existing phone users and that internal measures are still being finalized. The company reportedly believes that the smartphone market no longer offers the growth potential it needs, especially compared to what AI hardware can offer. As a result, resources once tied up in phone development are being redeployed into other AI devices like PCS and smart glasses. These comments cast serious doubt on the future of ASUS' phones, with 2026 shaping up as a possible end rather than a reset. While Shih stopped short of explicitly saying that ASUS is fully exiting the smartphone business, the language used and the scale of the pivot suggest that the development of new Zenfones and ROG Phones may be frozen indefinitely.

Asus exits smartphones indefinitely, no more ROG or Zenfones

He said the company would stop adding new smartphone models and redirect resources toward emerging AI-driven products. Asus declined to comment earlier this month when reports first hinted at a pullback. Shih's remarks now remove any ambiguity. While he did not rule out phones forever, he framed the decision as an open-ended pause rather than a temporary reset. Shih told attendees that Asus would shift focus toward artificial intelligence products, including robots and smart glasses. He emphasized long-term growth over maintaining an unprofitable category. "Asus will no longer add new mobile phone models in the future," Shih said, according to a report cited by Ars Technica. He added that the company would reassess only if market conditions changed. That change appears unlikely. Smartphone demand has slowed worldwide. Buyers upgrade less often. Prices continue to rise. Competition keeps intensifying. Asus once thrived by serving niche users. Over time, that strategy lost momentum. The company struggled to keep pace with larger rivals on software support, marketing scale, and pricing.

Asus confirms it will 'no longer' make Android smartphones as it shifts focus to AI

Asus has reiterated that it will "no longer" be making "new" Android smartphones with its focus shifting towards the market built up by AI. During its "2025 Year-End Gala" earlier this month, Inside reports that Asus chairman Jonney Shih directly confirmed that the company will exit the Android smartphone market. When asked about the move, he said (translated) that "Asus will no longer add new mobile phone models in the future," further adding that the company will "continue to take care of the brand's mobile phone users." This could be taken in one of two ways, with Asus either exiting the smartphone market altogether or just ending the development of new smartphone models beyond existing lineups, but in context, it's clearly the former. Further comments from the chairman revealed that Asus is shifting its resources away from smartphones in order to align with the "paradigm shift" that is... AI. Of course. The company is apparently using the resources previously spent on mobile phones to bolster "commercial PCs and physical AI devices," including "AI Robot & Robotics" and "AI Glasses."

ASUS chairman confirms company going 'all in AI', no more Zenfone, ROG smartphones to be made

TL;DR: ASUS chairman Jonney Shih confirms the company will stop launching new smartphones to fully focus on AI-driven innovation and commercial PC systems. With AI servers now generating 20% of revenue and rapid growth in AI demand, ASUS aims to lead the Fourth Industrial Revolution through advanced physical AI technologies. ASUS chairman Jonney Shih personally confirms that "ASUS will no longer add new mobile phone models in the future" with its vast R&D efforts fully shifted into physical AI, as the company is "all in AI" now. Just a few days ago on January 16, ASUS held its "2025 Year-End Gala" at the Taipei Nangang Exhibition Center -- where Computex takes place -- with the company awarding its staff with 8 new cars and a bunch of different prizes, but the company took the time to announce its future strategy. In a pre-event interview, ASUS chairman Jonney Shih confirmed the company will be temporarily ceasing the launches of any new smartphones, and will fully shift its R&D prowess to commercial PC systems and "physical AI", as its pushing hard into the Fourth Industrial Revolution. ASUS themed the gala with "AI Leading the Future" with the company encouraging staff to seize this "once in a lifetime" opportunity, and thoroughly embrace the marketing strategy of "Ubiquitous AI. Incredible Possibility". Shih underlined that the future of the world will be filled with "artificial brains" with self-learning abilities, and that ASUS has to push AI to its limits to evolve product innovation and operational processes. In regards to its AI business, Shih said that ASUS's server business and sales team have reached a milestone of over NT$100 billion in revenue ahead of schedule last year. ASUS has a huge flexible global manufacturing layout, with around 2200 server centers globally, meaning the company can provide customized and end-to-end services, and the ASUS chairman is confident in that moving into the future. ASUS originally estimated that AI servers would account for around 10-15% of its total revenue, but with the unstoppable demand for AI servers, ASUS's server revenue in Q3 2025 increased more than 100% year-on-year, making up around 20% of ASUS's total revenue.

Here's Why Asus is Reportedly Halting Its Smartphone Launches

Asus will reportedly continue provide after-sales services Asus is temporarily halting the launches of all new smartphone models, according to a report citing a company executive. Instead, the Taiwanese tech giant will redirect its research and development (R&D) resources towards manufacturing artificial intelligence (AI) hardware, which reportedly has a greater growth potential in the future. The company is said to now focus on commercial PCs, AI-powered robots, and AI smart glasses. The company executive also highlighted that the smartphone industry is grappling with the increasing RAM prices. Recently, a report highlighted that the company was planning not to launch new Zenfone and ROG phone models in 2026. Asus Shifts Focus to Develop AI Devices Inside TW reports that Asus chairman Jonney Shih has announced that the Taiwanese tech giant is "temporarily" halting future launches of new ROG and Zenfone smartphones. The announcement was reportedly made on January 16, during the 2025 Year-End Gala at the Taipei Nangang Exhibition Center. The tech firm is said to be planning a "paradigm" shift in its business strategy, as the company redirects its R&D resources towards developing commercial PCs and AI devices. The company executive reportedly said during a pre-event interaction with journalists that Asus will continue providing support to its existing smartphone users. However, the tech firm will "no longer add new models" to its existing lineups in the future. This indicates that the Zenfone and ROG phone series will be discontinued this year. Whether the shift is already in motion or will be implemented in the coming days is unclear. Asus' Chairman also reportedly highlighted that the smartphone industry is facing "severe challenges" due to the current supply chain constraints. He told the reporters that memory shortages, resulting in price increases, are putting pressure on "non-AI products". Taking this into consideration, the company will now focus on developing commercial PCs and "physical AI devices", specifically AI-powered robots and AI smart glasses, which reportedly have a "greater growth potential". The announcement comes shortly after reports of Asus not launching new Zenfone and ROG phone models in 2026 surfaced online. The latest announcement seems to put an indefinite delay on the launches of new Asus handsets. At the time, it was reported that existing handsets would continue to receive "comprehensive after-sales" support, OTA software updates, maintenance support, and warranty services. Asus reportedly wanted to ensure that its existing customers are not affected by the company's latest decision. Moreover, smartphone retailers and distributors in Taiwan will "no longer be able to obtain" Asus' handsets.

Asus exits smartphone business in search of AI silver bullet

Asus is getting out of the mobile business, which means no more ROG or Zenphones. The company is going all-in on AI instead. Asus is exiting the smartphone market. The company's chairman Jonney Shih has confirmed there'll be no more handsets from the Taiwanese firm moving forward. Most notably, that means the end of the popular gaming powerhouse phones launched under the ROG branding are going away, as well as the Zenfone line. As reported by Inside, Shih said Asus will instead focus on products powered by AI, which will include robotics and smart glasses. "Asus will no longer add new models of mobile phones in the future," the chairman said (translated) during ASUS' annual end of year gala. While Asus isn't ruling out a return in the future, Shih said the company is making a"substantial exit" or taking an "indefinite wait-and-see" approach. Instead, Asus is throwing all of its eggs in the AI basket with Shih saying "AI leads the way to the future" and he wants his colleagues to grab ahold of "the rare encounter in life." The company says "it will continue to take care of brand-name mobile phone users", which can be interpreted as continued support for the Asus smartphones through their lifespan. That means continued Android updates and security updates. Asus' departure from the scene might be precipitous as tech companies search for the smartphone's successor, whatever that may be. The current front runner appears to be AI glasses, while the first generations of AI Pins have flattered to deceive. However, those companies that can grab the early advantage might have the best shot at leading the future of consumer tech. For ROG gamers perturbed by the loss of their favourite smartphone brand, the company is still rolling out a series of gaming handhelds under that name, including one officially licensed by Xbox.