Asus has made a definitive move away from smartphones. The company officially announced its exit from the mobile phone market. This decision ends production of its popular Zenfone and ROG Phone lineups. Chairman Jonney Shih delivered the news at Asus's year-end event in Taipei on January 16.
What This Means for Smartphone Buyers
Consumers now face fewer choices in an already concentrated market. Samsung, Apple, and various Chinese brands dominate the landscape. With Asus stepping back, competition decreases significantly. This reduction in competition could lead to less aggressive pricing strategies. Innovation might also slow down without Asus pushing boundaries.
Impact on Mobile Gaming Enthusiasts
The exit hits mobile gaming particularly hard. Asus's ROG Phone had developed a loyal following. Gamers appreciated features like touch-sensitive shoulder triggers. The device also offered superior audio quality for an immersive experience. Meanwhile, the Zenfone series served a different niche. It provided one of the few compact flagship options available. This changed when Asus shifted toward larger displays like other manufacturers.
Market Response in Key Regions
The move did not come as a complete surprise in India. Asus had already scaled back its operations there significantly. The last Zenfone model to reach Indian stores was the 8Z in 2022. The ROG Phone 8 followed in 2024. In the United States, the situation looks different. Current ROG Phone models are already sold out completely. The latest Zenfone 12 Ultra never even made it to American shelves. Existing customers will not be abandoned completely. Asus promised continued software updates for current devices. Warranty support will also remain available.
Why Asus Is Making This Strategic Shift
The company is redirecting its smartphone engineering talent. These resources will now focus on "Physical AI" projects. This new direction includes robotics and smart glasses development. Recent financial performance explains this calculated bet. Asus's AI server division doubled its revenue during 2025. This segment now generates approximately twenty percent of total company earnings.
Financial pressures in the smartphone market contributed to this decision. Memory chip shortages have driven component prices higher. These increased costs squeeze smartphone profit margins considerably. AI hardware offers more attractive financial returns by comparison. Rival gaming phone maker RedMagic expressed satisfaction when rumors of Asus's exit surfaced earlier in January.
Chairman Jonney Shih stated clearly that "Asus will no longer add new mobile phone models in the future." While he suggested the company might monitor the smartphone space occasionally, the massive scale of its AI investment indicates this exit could be permanent. The company appears fully committed to its new direction in artificial intelligence hardware.
