Asus confirmed it is indefinitely suspending its smartphone business, pivoting to focus on 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. While Shih did not explicitly rule out a future return to the smartphone market, he indicated the company would adopt a "wait-and-see" approach, leaving the possibility open but without a concrete timeline.

The decision comes after years of struggling to gain significant market share in a highly competitive industry dominated by companies like Samsung and Apple. Asus's Zenfone line, known for its smaller size and relatively lower price point, failed to resonate with a broad consumer base, compounded by concerns over the company's software support and update policies. The ROG Phone, targeted at gamers, also faced challenges in carving out a sustainable niche.

The financial impact of this strategic shift remains to be seen, but analysts suggest it could allow Asus to allocate resources more effectively to its AI initiatives, potentially leading to higher profit margins in the long run. The company's stock performance following the announcement will be closely monitored to gauge investor sentiment.

Asus's exit from the smartphone market reflects a broader trend of consolidation within the industry, with smaller players finding it increasingly difficult to compete with established giants. The company's decision to focus on AI aligns with growing demand for smart devices and robotics, presenting a potential avenue for future growth and innovation. The company has not released specific financial projections related to its AI ventures.