Asus Officially Ends Smartphone Production To Pivot Toward Artificial Intelligence
After years of speculation and market struggles, Asus has confirmed it is leaving the smartphone industry for good. The Taiwanese technology giant officially announced the cessation of its mobile division to refocus resources on other emerging sectors. Chairman Jonney Shih broke the news during a year-end company event in Taipei earlier this week. This decision marks the end of the road for the popular Zenfone and ROG Phone product lines. The company will no longer develop or release new mobile phone models in the future.
This major strategic shift is driven by a desire to capitalize on the booming artificial intelligence market. Asus plans to redirect its mobile engineers and development teams toward projects involving what they call Physical AI. This new focus includes the creation of smart glasses and advanced robotics hardware. The company has seen significant financial success in its AI server division recently and wants to double down on that growth. Revenue from their AI server business reportedly doubled in the last year alone.
The departure of Asus from the smartphone world brings a definitive end to months of uncertainty regarding their mobile future. Rumors first circulated in 2023 that the company intended to shut down its Zenfone division. Executives strongly denied those reports at the time and continued to release devices for another year. The 2026 confirmation indicates that the market pressures eventually became too great to ignore. Intense competition from industry leaders like Apple and Samsung made it difficult for niche players to survive.
Fans of the brand will likely mourn the loss of some of the most unique devices on the market. The Zenfone series was widely appreciated for offering high-end specifications in compact designs that were easy to use with one hand. The ROG Phone line carved out a dedicated following among mobile gamers by offering powerful cooling systems and specialized gaming triggers. These devices stood out in a sea of generic glass slabs but ultimately could not generate enough profit to sustain the division. Rising component costs and memory shortages further squeezed their already thin profit margins.
Current owners of Asus smartphones have been assured that they will not be left without support immediately. The company promised to continue providing software updates and maintenance for existing devices for a reasonable period. This ensures that users who recently purchased a flagship phone will not face security risks or bugs right away. However, the hardware production lines are stopping immediately as the transition to AI hardware begins. The move reflects a broader trend where traditional hardware manufacturers are scrambling to find their place in the AI revolution.
It is always a significant moment when a well-known manufacturer decides to bow out of the consumer mobile space completely. The industry is consolidating as smaller players find it impossible to compete with the massive ecosystems of the top brands. Asus will now bet its future on becoming a key player in the infrastructure and hardware that powers artificial intelligence. This pivot could prove lucrative if the demand for smart robotics and AI-integrated hardware continues to explode.
Tell us if you will miss the unique features of the Zenfone or ROG Phone series in the comments.
