Asus confirmed it is indefinitely halting its smartphone business, pivoting towards artificial intelligence products such as robots and smart glasses. The announcement was made by Asus Chairman Jonney Shih at a company event in Taiwan, marking a significant shift in the company's strategic direction.

Shih stated that Asus will no longer introduce new mobile phone models, effectively ending the Zenfone and ROG Phone lines, according to a machine translation of his remarks reported by Inside. The decision comes after an earlier unconfirmed report suggested a potential pullback, which the company initially declined to address.

The move reflects a broader trend of smartphone manufacturers struggling to maintain profitability in a highly competitive market dominated by industry giants like Apple and Samsung. While specific financial figures related to Asus's smartphone division were not disclosed, the company's decision to exit the market suggests that the business was not meeting internal performance expectations. The Zenfone line, known for its slightly smaller size and lower price point compared to competitors, failed to gain significant market traction, partly due to concerns about Asus's support and update policies.

The company's focus will now be on developing AI-driven technologies, an area where Asus believes it can achieve greater success. This strategic realignment reflects a growing emphasis on AI across the tech industry, with companies investing heavily in areas such as robotics, smart devices, and machine learning.

While Shih did not explicitly rule out a future return to the smartphone market, he indicated that the company would adopt a "wait-and-see" approach, leaving the door open for a potential re-entry depending on future market conditions and technological advancements. The immediate impact on the smartphone market is expected to be minimal, given Asus's relatively small market share. However, the decision underscores the challenges faced by smaller players in the industry and the increasing pressure to innovate and differentiate in a rapidly evolving landscape.