Taipei, Taiwan – Asus, the well-known Taiwanese technology company, has officially confirmed its departure from the smartphone market. The company will not release any new smartphone models in 2026, marking the end of its Zenfone and ROG Phone series. This strategic shift will see Asus redirect its resources and research efforts towards commercial PCs and physical artificial intelligence (AI) technologies, including robotics and smart glasses.
Asus Confirms Smartphone Exit
Asus Chairman Jonney Shih made the definitive announcement earlier this month during a special gala held at the Taipei Nangang Exhibition Center. This decision follows years of declining smartphone activity and poor sales performance for the company's mobile division. The company plans to completely cease the introduction of new smartphone models moving forward.[me+5]
Existing Asus smartphone users will continue to receive full support. The company has pledged to provide ongoing maintenance, software updates, and warranty services for all current Zenfone and ROG Phone devices. For example, major software updates, including Android 16, were recently shipped to the ROG Phone 9, ROG Phone 9 Pro, and the Zenfone 12 Ultra in November 2025.[9to5google+7]
Market Pressures Drive Strategic Change
Asus's exit from the competitive smartphone arena comes after more than two decades of operating its mobile business without achieving consistent profitability. The company's mobile division contributed a mere 1% to its total revenue in the third quarter of 2023. This minimal contribution highlighted the need for a significant strategic re-evaluation.[digitimes+2]
The smartphone market has become increasingly saturated, with intense competition from established giants like Samsung and Apple, alongside aggressive Chinese manufacturers such as Xiaomi and Oppo. Despite offering innovative features and catering to niche markets, such as gaming phones and compact flagships, Asus struggled to gain substantial market share globally. In 2025, Asus launched only two new models, the ROG Phone 9 FE and the Zenfone 12 Ultra, neither of which achieved strong sales.[phonearena+3]
Rising component costs, particularly for memory like DRAM and RAM, also presented significant challenges. Smaller players like Asus found it increasingly difficult to absorb these costs or compete on price with larger manufacturers who could leverage greater economies of scale and secure better component pricing.[me+3]
Future Focus on AI and PCs
The move away from smartphones allows Asus to funnel its resources into areas demonstrating higher growth and profitability. Chairman Shih reported that Asus recorded a strong overall revenue of TWD 738.91 billion, equivalent to $23.4 billion, in 2025. This represents a 26% increase compared to 2024.
The company's AI server business was a standout performer, achieving an impressive 100% growth and doubling its own targets. This success underscores why Asus is shifting its focus to sectors with higher demand and greater potential. The company is now betting on future technologies, with robotics, smart glasses, and AI-driven PCs expected to be its next major growth engines. Development resources previously allocated to mobile phones are now being redirected to bolster efforts in these promising new areas.[me+7]
Impact on Consumers and the Market
For consumers, Asus's exit means fewer choices in the smartphone market. This is particularly true for those who valued the gaming-focused ROG Phones or the compact designs of the Zenfone series. The ROG Phone, in particular, carved out a distinct identity with its advanced cooling systems, high-refresh-rate screens, and responsive shoulder buttons. Its departure opens up more space for competitors in the gaming phone niche.[me+3]
While rumors about Asus discontinuing its Zenfone line circulated in August 2023, the company had denied those reports at the time, stating a commitment to both its Zenfone and ROG Phone product lines. However, the official announcement in early 2026 confirms a complete shift in strategy.[phonearena+4]
Asus's decision reflects a broader trend in the tech industry where companies are constantly re-evaluating their portfolios to adapt to market changes and capitalize on emerging opportunities. By focusing on AI and commercial PCs, Asus aims to strengthen its position in high-growth technology sectors.[gsmarena+2]
