Full Breakdown
Asus Exits Smartphone Market, Shifts Focus to AI Products
1/19/2026, 10:51:51 PM
Confirmation of Market Exit
Asus chairman Jonney Shih has officially confirmed that the company will cease the development of new smartphone models, marking a significant shift in its business strategy. During a recent event in Taiwan, Shih stated, “Asus will no longer add new mobile phone models in the future,” indicating the end of both the Zenfone and ROG Phone lines. This decision follows an earlier unconfirmed report suggesting a pullback on Asus's smartphone plans.
Shift in Business Focus
The company is redirecting its resources towards artificial intelligence (AI) products, including AI robots and smart glasses. Shih emphasized that Asus is entering a phase of “indefinite observation” of the smartphone market, suggesting that while the company is not completely ruling out a return to mobile phones, it will not be introducing new models for the foreseeable future. This strategic pivot aligns with a broader industry trend where several manufacturers have reduced their focus on smartphone development.
Background on Asus's Smartphone Offerings
Asus's smartphone offerings have struggled to gain significant traction in a competitive market dominated by brands like Apple and Samsung. The Zenfone line, known for being smaller and more affordable, failed to capture consumer interest, while the ROG Phone line, despite its premium features tailored for gaming, has been criticized for high pricing and limited software support. The ROG Phone 9 Pro, for instance, starts at $1,200 and offers only two operating system updates and five years of security patches, which is below industry standards.
Criticism of Asus's Strategy
Critics argue that Asus's exit from the smartphone market reflects a lack of innovation and competitiveness in its mobile offerings. The company released only two models in 2025, neither of which made a significant impact in the U.S. market. The decision to abandon smartphones may also be seen as a response to declining consumer interest in frequent phone upgrades, a trend that has been noted across the industry.
Official Statements & Responses
In his remarks, Shih reassured existing Asus smartphone users that the company would continue to support its current devices, although the specifics of this support remain unclear. The shift towards AI products has been framed as a necessary adaptation to changing market dynamics, with Shih noting the importance of aligning with the “paradigm shift” towards AI technologies.
What's Next for Asus?
Asus's future plans will focus on enhancing its portfolio in AI-related sectors, potentially leading to new product lines in commercial PCs and robotics. The company’s decision to exit the smartphone market may allow it to allocate resources more effectively towards these emerging technologies, although the long-term implications of this strategy remain to be seen.
Verbatim Quotes
- “Asus will no longer add new mobile phone models in the future,” — Jonney Shih, Chairman of Asus
- “continue to take care of the brand’s mobile phone users.” — Jonney Shih, Chairman of Asus
