ASUS has confirmed it is exiting the smartphone market. ASUS Chairman Jonney Shih announced that the company will no longer release new Zenfone or ROG Phone models. Current devices will still get support, but the brand is moving its focus to AI hardware.
The company’s R&D efforts are now directed at physical AI products, including robotics and smart glasses. ASUS plans to build on its experience with commercial PCs and Qualcomm platforms to develop new AI‑driven devices.
ASUS reported strong financial results in 2025. Revenue reached NT$738.91 billion, up 26.1% year‑on‑year. Its AI server business doubled in growth, hitting targets ahead of schedule.
Still, supply chain challenges remain, with memory shortages and rising component prices affecting non‑AI products. ASUS has signaled possible price increases while focusing on efficiency and resilience.
Zenfone struggled to stand out in ecosystem integration and camera performance. ROG Phone found a niche among gamers but faced high production costs. Analysts say the pivot to AI hardware is risky but could be transformative, positioning ASUS to shape the next decade of devices.
Also Read: ASUS CES 2026 lineup highlights AI laptops and desktops
ASUS’s exit underscores how shifting consumer demand and market pressures are reshaping the industry. The company is betting that AI hardware will drive its future growth, leaving smartphones behind.
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