The decision comes after an earlier unconfirmed report suggested a potential pullback from the smartphone market, which the company initially declined to address. The move signals a strategic shift for Asus, redirecting resources towards AI-driven technologies like robots and smart glasses.
While Shih did not explicitly rule out the possibility of future phone releases, he indicated the company would adopt a "wait-and-see" approach, suggesting a prolonged period without new smartphone models. The Zenfone line, known for its compact size and competitive pricing, may not be continued.
Asus's smartphone market share has been relatively small, contributing minimally to the company's overall revenue. Specific financial figures related to the smartphone division's performance were not disclosed during the announcement. The company's decision reflects the challenges of competing in a saturated smartphone market dominated by major players like Samsung and Apple.
The impact on Asus's stock price following the announcement was not immediately available. The company's future performance will likely be judged on its ability to successfully develop and market its AI-focused products.
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