In a strategic shift that has sent ripples through the tech industry, ASUS Chairman Jonney Shih has revealed that the company will not release any new smartphone models in 2026. This decision extends to the foreseeable future, strongly suggesting that the Taiwanese giant may be withdrawing from the Android smartphone market entirely.
Despite the halt in new hardware production, ASUS has committed to maintaining support and providing software updates for its existing smartphone lineup to ensure current users are not left behind.
The Legacy of Zenfone and ROG Phone
ASUS has long been a key player in the niche smartphone sectors with two distinct sub-brands:
Zenfone: Known for its compact design and high-end specs.
ROG Phone: A pioneer in the dedicated gaming smartphone market.
Signs of a slowdown were already apparent last year, with ASUS releasing only two models: the ROG Phone 9 FE and the Zenfone 12 Ultra. This limited release schedule fueled speculation that the company was re-evaluating its mobile division’s profitability.
Pivoting to AI and Next-Gen Computing
According to Shih, the specialized talent from the smartphone R&D teams will be reassigned to the company’s core growth sectors. ASUS plans to double down on PC development and AI-driven products, specifically focusing on:
Robotics: Enhancing home and industrial automation.
Smart Glasses: Developing AR/VR wearable technology.
- AI PCs: Integrating advanced artificial intelligence directly into personal computing hardware.
The global smartphone market has reached saturation and is highly competitive due to price competition from Chinese brands (such as Xiaomi and Vivo) and the dominance of Apple and Samsung in the high-end segment. ASUS's withdrawal reflects this shift by mid-sized brands towards "blue oceans," such as AI.
The overwhelming success of the ROG Ally (a portable PC-style gaming device) may be one factor that convinced ASUS that developing hybrid PC-portable products is more worthwhile than competing in the traditional mobile market.
The move from their mobile division to smart glasses aligns with the global trend that spatial computing will replace smartphones in the future, an area where ASUS already possesses strong expertise in hardware and graphics.
Previously, there were rumors of the Zenfone division being dissolved, which ASUS denied at the time. However, Jonney Shih's recent announcement indirectly confirms a permanent change in the company's direction.
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