Asus confirmed it is indefinitely halting its smartphone business, pivoting its focus to 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. "Asus will no longer add new mobile phone models in the future," Shih said, according to machine translation. The company will adopt a "wait-and-see" approach regarding any potential future entry into the smartphone market.

The decision comes after an unconfirmed report earlier this month suggested a potential pullback from the smartphone sector, which Asus declined to comment on at the time. The Zenfone line, known for offering slightly smaller and cheaper alternatives to competitors, struggled to gain significant market share, with limited consumer interest in recent models. The company's support and update policies for its phones also received criticism.

The shift towards AI reflects a broader trend among tech companies to invest in emerging technologies with higher growth potential. While Asus has not released specific financial figures related to its smartphone division's performance, the decision to wind down the business suggests it was not meeting the company's profitability expectations. The impact on Asus's overall revenue remains to be seen, as the company aims to offset any losses with its new AI-focused ventures.

The company's future strategy will center around developing and marketing AI-powered devices, including robots and smart glasses. The timeline for the release of these new products and their expected market impact has not yet been disclosed.