Asus confirmed it is indefinitely suspending its smartphone business, pivoting towards artificial intelligence products such as robots and smart glasses. Chairman Jonney Shih announced the wind-down during a 2026 kick-off event in Taiwan, according to Inside.

Shih stated that Asus would no longer introduce new mobile phone models, effectively ending the Zenfone and ROG Phone lines. The decision comes after an earlier unconfirmed report suggested a potential pullback, which the company initially declined to address. While Shih did not explicitly rule out a future return to the smartphone market, he indicated an indefinite "wait-and-see" approach.

The move reflects a strategic shift for Asus amid a challenging smartphone market. The company's Zenfone line, known for its smaller size and competitive pricing, struggled to gain significant market share against established competitors. Industry analysts suggest that Asus's limited investment in marketing and inconsistent software support contributed to its lack of traction with consumers. The financial impact of this decision on Asus's overall revenue remains to be seen, although smartphone sales represented a relatively small portion of the company's total earnings.

Asus's decision to focus on AI aligns with broader industry trends, as companies increasingly invest in artificial intelligence and related technologies. The company hopes to leverage its existing expertise in hardware and software to develop innovative AI-powered products that can compete in emerging markets. The success of this strategy will depend on Asus's ability to effectively develop and market these new products, as well as its ability to navigate the rapidly evolving AI landscape.