Why ASUS is Walking Away From Smartphones in 2026?

No More Zenfone and ROG Phone?

ASUS may be stepping away from the smartphone race. At its 2025 year-end event in Taipei, Chairman Jonney Shih confirmed that the company will not add new mobile phone models. ASUS will instead redirect its research and development toward commercial PCs and “Physical AI.”

The announcement places the future of ASUS smartphones under a cloud. Popular lines like Zenfone and ROG Phone may not see successors in 2026.

This shift signals a major change for a brand that once challenged industry leaders with compact flagships and gaming-focused phones.

A Strategic Turn Toward AI

ASUS is reworking its roadmap around artificial intelligence. Shih said the company wants to seize the opportunity of the “Fourth Industrial Revolution.” The focus now moves to AI-powered hardware.

The company plans to expand into two key areas:

  • AI robots and robotics
  • AI glasses and physical AI devices

ASUS believes these products offer stronger long-term growth. The skills from its mobile division, especially Qualcomm platform expertise, will support this transition.

Strong Numbers Fuel the Move

The shift comes at a time of financial strength. ASUS reported annual revenue of NT$7,389.1 billion. That marks a 26.1 percent rise year-on-year.

AI-driven businesses led this growth. The AI server segment doubled, reaching its 100 percent growth target.

These results reinforce ASUS’s confidence in AI-first hardware.

What This Means for Zenfone and ROG Phone

Shih stated that ASUS will “take care of existing users.” However, he made it clear that no new phone models are planned.

This places Zenfone and ROG Phone in a holding pattern. Both series built loyal followings. Zenfone gained praise for compact designs. ROG Phone became a benchmark for gaming phones.

Now, ASUS smartphones move into a phase of observation rather than expansion.

Supply Chain Pressures Remain

Shih also addressed market challenges. Memory shortages and rising prices are putting pressure on non-AI products. Price increases remain a possibility.

ASUS aims to balance cost through design and supply chain planning. The company also welcomed easing trade conditions between Taiwan and the US, calling them positive for stability.

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