Archive · 20 Jan 2026
Asus Exits Smartphone Market for AI Focus
Asus, a company that makes electronics, has decided to stop making smartphones.
Their chairman, Jonney Shih, said this at a big company event.
Asus will now focus on making AI devices like robots and smart glasses.
This is because making smartphones is getting more expensive, and Asus thinks it can do better by focusing on AI.
They had some popular phones like the Zenfone and ROG Phone, but they weren't as big as phones from companies like Samsung or Apple.
Now, Asus wants to use its resources to make AI-powered devices instead.
The company saw a big increase in revenue from its AI server business, which is a key reason for this change.
Asus is officially exiting the smartphone market, as announced by chairman Jonney Shih during the 2025 Year-End Gala.
The company will no longer produce new Android smartphones, focusing instead on AI devices like robots and smart glasses.
Increasing production costs and the shift towards AI-driven hardware ecosystems are the primary reasons for this decision.
Asus's smartphone lineup included the Zenfone series and the ROG Phone series, which had a cult following but were not mass-market leaders.
The company's strong footing in PCs, gaming laptops, and components makes the shift to AI-driven devices a strategic long-term play.
- Who
- Asus, a Taiwanese tech company
- What
- Asus is exiting the smartphone market to focus on AI devices
- When
- Announced during the 2025 Year-End Gala
- Where
- At the Asus 2025 Year-End Gala in Taiwan
- Why
- Due to increasing production costs, a strategic shift towards AI-driven hardware ecosystems, and intense market competition
Strategic Shift
Market Challenges
Business Focus
Strategic Shift
Asus is strategically shifting to AI-driven hardware like robots and smart glasses for long-term growth.
Market Challenges
The smartphone market is mature with intense competition, making it difficult for smaller players to thrive.
Production Costs
Strategic Shift
Focusing on AI devices allows Asus to invest in more profitable and innovative technologies.
Market Challenges
Increasing production costs, especially due to memory chip shortages, make smartphone manufacturing less viable.
- Company
- Asus
- Announcement By
- Jonney Shih (Chairman)
- Event
- 2025 Year-End Gala
- New Focus
- AI devices, including robots and smart glasses
- Discontinued Products
- Zenfone, ROG Phone series
- Reason
- Increasing production costs, shifting to AI-driven hardware ecosystems
- Revenue Increase
- 26.1% in 2025
- Key Growth Driver
- AI server business