Asus Pauses Smartphone Launches to Focus on AI Devices
Asus has officially confirmed a major strategic shift that could reshape its role in the Android ecosystem. The company will pause the launch of new smartphones, redirecting its research and development resources toward AI-driven devices, including smart glasses, robotics, and commercial AI PCs.
The confirmation comes directly from Asus Chairman Jonney Shih, who stated that the company will no longer introduce new mobile phone models for the foreseeable future. While existing devices will continue to receive support, the decision signals a significant retreat from the highly competitive smartphone market.
For long-time Android users familiar with Zenfone and ROG Phone, this move raises an important question: Is Asus quietly exiting smartphones for good?
Asus Confirms Smartphone Pause, Not a Temporary Delay
During Asus’ 2025 Year-End Gala in Taipei, Jonney Shih addressed ongoing speculation about the company’s mobile strategy. His comments were direct and unambiguous.
Key confirmation points:
- Asus will no longer add new smartphone models
- R&D resources are being fully shifted away from phones
- Focus areas include Physical AI, robotics, and AI wearables
- Existing smartphone users will continue to receive support
While Asus has not used the word “exit,” industry analysts view the move as a substantial withdrawal rather than a short-term pause.
Why Asus Is Stepping Away From Smartphones
The smartphone market has become increasingly difficult for mid-tier and niche brands to sustain. Despite strong engineering credentials, Asus struggled to achieve consistent mass-market success.
Challenges Asus faced in smartphones:
- Zenfone series failed to scale against Apple, Samsung, and Xiaomi
- ROG Phone, while popular among gamers, served a narrow audience
- Rising component costs reduced margins on premium Android phones
- Ecosystem-driven brands outperformed hardware-focused competitors
Even critically praised models often fell into the category of “well-reviewed but low-volume” products—an unsustainable position in today’s market.
AI Becomes Asus’ New Growth Engine
The shift away from smartphones is closely tied to Asus’ rapid success in AI infrastructure. According to company disclosures, Asus’ revenue grew 26.1% year-over-year, largely driven by AI server deployments.
Key AI-driven growth factors:
- AI server business achieved 100% growth
- Strong demand for enterprise and commercial AI hardware
- Increased profitability compared to consumer smartphones
For Asus, AI represents not just innovation—but financial stability and scalability.
Focus Areas: Robotics and Smart Glasses
Instead of competing in a saturated phone market, Asus plans to invest in Physical AI, a term the company uses to describe intelligent devices that interact with the real world.
Asus’ new priority categories:
- AI smart glasses with real-time processing
- Robotics and autonomous systems
- Commercial AI PCs and workstations
- Snapdragon-based laptops using Qualcomm X-series chips
The company is expected to leverage its deep experience with Qualcomm platforms, transitioning smartphone engineering expertise into new form factors.
Smart Glasses: A Risky but Strategic Bet
Smart glasses have struggled to achieve mainstream adoption, even with backing from companies like Google and Apple. However, Asus appears confident that advances in on-device AI could change that.
Why Asus believes smart glasses could succeed:
- AI models now support real-time translation and context awareness
- Improved battery efficiency enables wearable computing
- Enterprise and productivity use cases are expanding
- Android XR and AI assistants lower adoption barriers
Rather than consumer-first products, Asus may initially target professional and commercial markets, where smart wearables offer clearer value.
What Happens to Zenfone and ROG Phone?
While Asus has not officially discontinued its smartphone brands, the future looks uncertain.
Current status:
- No new Zenfone models planned
- No successor announced for ROG Phone 9 Pro
- Software and customer support will continue
- No timeline for potential return to smartphones
Industry observers expect 2026 to be the first year without any new Asus phones, effectively marking the end of an era for the brand’s mobile lineup.
Supply Chain Pressures Also Playing a Role
Jonney Shih also acknowledged memory shortages and rising component costs, which are impacting non-AI products across the industry.
Supply chain highlights:
- RAM prices are increasing globally
- Some Asus laptops and desktops already saw price hikes
- AI products are being prioritized for component allocation
- Asus aims to minimize impact through supply chain collaboration
This reinforces why Asus is focusing on higher-margin AI products instead of cost-sensitive smartphones.
Is Asus Quietly Exiting Smartphones?
From a business perspective, the decision appears pragmatic.
Strategic reality check:
- Smartphones require massive marketing investment
- Differentiation is increasingly ecosystem-based
- AI hardware offers faster returns and scalability
- Asus’ strengths align better with engineering-heavy AI devices
Rather than fighting declining margins, Asus is repositioning itself for the next computing cycle.
What This Means for Android Users
For Android enthusiasts, Asus’ decision is bittersweet. The company consistently delivered:
- Clean Android software
- Compact flagship designs
- Industry-leading gaming phones
However, the broader Android market is shifting toward AI experiences, not just hardware specs.
If Asus succeeds in transferring its mobile expertise into AI glasses or robotics, the company could play a key role in defining post-smartphone computing.
Final Thoughts
Asus pausing smartphone launches marks one of the most significant strategic pivots by a major Android brand in recent years. While the Zenfone and ROG Phone lines may fade into history, Asus is betting that AI-powered devices—not smartphones—will define the next decade.
Whether this gamble pays off remains to be seen. But one thing is clear: Asus is no longer chasing smartphone market share—it’s chasing the future of AI hardware.
