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| Asus smartphones including Zenfone 11 Ultra and ROG Phone 9 Pro |
In a move that signals just how profoundly the AI revolution is reshaping the tech landscape, Asus has officially confirmed it is exiting the smartphone market. The company’s chairman, Jonney Shih, announced that the Taiwanese giant will cease developing new phone models, pivoting its resources toward what it sees as the next frontier: AI-powered robotics and smart glasses.
The confirmation, as reported by VideoCardz, came from remarks Shih made at a company year-end gala on January 16th, which were later recorded by Taiwanese media Money UDN. “Asus will no longer add new mobile phone models in the future,” Shih stated plainly. This strategic shift means consumers should not expect new iterations of the Zenfone line or the gaming-focused ROG Phone series. Shih did commit to continuing support for existing devices during a transitional period.
The Financial Driver: Following the AI Money Trail
The decision, while significant, isn’t coming out of thin air. A glance at Asus's financial performance provides the crucial context. The company’s 2025 revenue saw a substantial 26.1% year-over-year increase, a surge largely attributed not to consumer gadgets, but to the explosive growth in AI server deployment. With the smartphone market being intensely competitive and low-margin for all but the top players, Asus is choosing to double down on a sector where it’s already seeing tangible, profitable growth.
So, what’s next for the brand known for its motherboards, laptops, and phones? Chairman Shih pinpointed two core areas: “AI robot & robotics” and “AI glasses.” This marks a fundamental reimagining of Asus’s consumer product future.
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| Translation feature seen with Android XR smart glasses |
Is the Smart Glasses Bet a Wise Gamble?
This pivot raises immediate questions, especially regarding smart glasses. Asus never quite achieved mainstream dominance in smartphones, with its Zenfone and ROG Phone lines remaining popular with enthusiasts but not breaking into the global top tier. Furthermore, the smart glasses category itself has been a challenging nut to crack, with heavyweights like Google and Apple struggling to move their devices beyond a niche audience.
However, Shih’s bet appears to be that the integration of advanced, on-device AI will be the missing ingredient. The next generation of AI could transform smart glasses from simple notification displays or camera hubs into truly context-aware, intuitive companions, potentially unlocking the mainstream adoption that has so far eluded the product category.
A Deeper Shift in Technology and Supply Chain
This strategic exit from smartphones suggests a deeper technological evolution for Asus. Analysis from Inside TW anticipates the company will move further away from the Qualcomm chips that powered its phones, instead embracing Snapdragon X series processors for its laptops. Furthermore, Qualcomm’s Dragonwing platform is expected to be crucial for developing the more autonomous robots Asus is now targeting.
Shih also addressed broader industry challenges, notably the ongoing memory shortage. He admitted that current laptops and other hardware may see price increases, but stated Asus plans to leverage “design thinking and supply chain collaboration” to mitigate the impact of rising RAM costs. The company has already adjusted MSRPs on some notebooks and desktops but claims to have sufficient component inventory to stave off further immediate hikes.
The Bottom Line
Asus’s decision is a stark indicator of the powerful gravitational pull the AI sector now exerts. By stepping away from the crowded smartphone arena, Asus is freeing up capital and engineering talent to chase what it believes is the next high-growth, high-margin opportunity. The success of this bold gamble now hinges on its ability to innovate in robotics and finally deliver a compelling vision for AI glasses that resonates with consumers worldwide. The era of the Asus phone is over; the era of the Asus AI companion has just begun.