Asus calls it quits with smartphone business

A person holding a smartphone that is on fire, with flames engulfing the top half of the device, set against a blurred natural background.

ASUS is exiting the smartphone market to focus on AI-driven devices, according to reports from Taiwanese tech outlet Inside.

Chairman Jonney Shih confirmed that the company will stop launching new mobile phones and instead invest in commercial PCs, AI glasses, robotics systems, and other AI-enabled products.

Shih highlighted that ASUS’s total revenue reached NT$738.91 billion last year, a 26.1 percent increase from 2024, crediting much of this growth to early AI investments. He emphasized the concept of “Ubiquitous AI,” which integrates artificial intelligence into everyday devices to provide context-aware, personalized experiences without heavy reliance on cloud computing.

At CES 2026, ASUS showcased AI-powered laptops, desktops, all-in-one PCs, and extended reality products, including the ROG XReal R1 gaming glasses developed with XReal.

The wearable display projects a virtual screen up to 171 inches and supports refresh rates of 240Hz with low motion-to-photon latency. It features spatial tracking, electrochromic lenses, Bose audio, and connects to PCs, consoles, and the ROG Ally handheld device. ASUS has not announced a release date for the glasses.

Shih stated that while ASUS will halt future smartphone launches, the company will continue supporting existing devices. This marks an indefinite pause for the Zenfone and ROG Phone lines, though a potential return is not ruled out.

In India, the Zenfone brand is restricted due to a 2019 trademark dispute, leaving the ROG Phone series as ASUS’s primary smartphone offering. The last ROG phone released in India was the ROG Phone 8 Pro in January 2024, while the last Zenfone device sold there was the ASUS 8Z in February 2022.

Analysts say ASUS’s pivot reflects a broader industry trend of shifting toward AI computing and immersive experiences, as global demand for traditional smartphones slows.

By focusing on AI-enabled PCs, wearable displays, and robotics, ASUS aims to position itself at the forefront of the next phase of computing.