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 during a 2026 kick-off event in Taiwan, as reported by Inside. Shih stated that Asus will no longer introduce new mobile phone models, effectively ending the Zenfone and ROG Phone lines for the foreseeable future.

The decision comes after years of struggling to gain significant market share in a competitive smartphone landscape dominated by companies like Samsung and Apple. While Asus never publicly released specific sales figures for its smartphone division, industry analysts suggest that its market share remained consistently below 1%, indicating limited financial returns. "Asus will take an indefinite wait-and-see approach," Shih said, according to a machine translation of his remarks, leaving open the possibility of a future return to the mobile phone market, though no concrete plans are in place.

The company's Zenfone line, known for its smaller size and competitive pricing, failed to resonate with a broad consumer base, while its ROG Phone series, targeted at gamers, faced stiff competition from other gaming-focused smartphones. Furthermore, Asus's support and update policies for its phones were often criticized, contributing to customer dissatisfaction. The shift towards AI reflects a broader trend among technology companies to invest in emerging technologies with higher growth potential. Asus hopes to capitalize on the increasing demand for AI-powered devices and solutions, potentially leading to improved financial performance in the long term.

The immediate impact on Asus's overall revenue is expected to be minimal, given the relatively small contribution of the smartphone division. However, the move signals a strategic realignment, focusing resources on areas where Asus believes it can achieve greater success. The company has not yet announced any layoffs related to the wind-down of its smartphone business, but internal restructuring is anticipated as resources are reallocated to AI-related projects. The future of Asus in the mobile device market remains uncertain, dependent on the company's success in its new AI ventures and potential shifts in the competitive landscape.