ASUS has confirmed that it will pause the release of new smartphones and move its research and development efforts toward AI-related products. The company said it will no longer add new phone models, although it will continue to support existing users of its smartphones.
Why it Matters: This move marks a major shift for ASUS, a company that has been making smartphones for more than two decades. It changes the brand’s position in the mobile market and reflects how some tech companies are now prioritizing AI and new device categories over traditional smartphones.
The plan was revealed during ASUS’ year-end event in Taipei, where chairman Jonney Shih said the company will temporarily stop launching new smartphones. Instead, Asus will focus its resources on commercial PCs and so-called “physical AI” products, such as robots and smart glasses.
ASUS explained that the global smartphone market has become extremely competitive, with only a few very large brands dominating sales and marketing. For smaller players, it has become harder to stand out and maintain profitability. Because of this, the company is reallocating its research and development budget away from phones and toward AI hardware and other growth areas.
While ASUS did not announce a complete shutdown of its phone business, it also did not give any timeline for a possible return. Shih only said the company will continue to provide software updates and after-sales support for existing users.
In the Philippines, ASUS phones have never been among the biggest sellers, but the ROG Phone series, in particular, built a strong niche among mobile gamers. The Zenfone line also had periods where it competed in the upper midrange and compact flagship space, even if availability was sometimes limited compared to bigger brands.
If this direction continues, the Zenfone and ROG Phone lines may effectively be put on hold, marking the end of an era for Asus in the smartphone space and showing how even established brands are being pushed to rethink their place in a very crowded market.
Shih said ASUS will continue to provide support for its current smartphone users, but he did not give any timeline or plans on when, or if, the company will return to making phones.
With this decision, the Zenfone series and the gaming-focused ROG Phone line may effectively come to an end, at least for now. The shift suggests ASUS is betting that AI-related devices will be a more important growth area for the company in the coming years.
For now, there has been no separate announcement from ASUS Philippines about how this shift will affect local sales, remaining stocks, or future support plans. This suggests the company’s current priority is to reshape its global product strategy before making country-level decisions public.
Do you think other smartphone brands might also rethink their phone businesses as competition in the market becomes tougher?
