Asus has confirmed that it is winding down its smartphone business, raising doubts over the future of its Zenfone and ROG Phone product lines.
Speaking at an event in Taiwan, Asus Chairman Jonney Shih said the company would no longer introduce new mobile phone models, as it pivots toward emerging technologies such as artificial intelligence-powered devices, including humanoid robots and smart glasses.
Shih outlined Asus’ broader business strategy, noting that the company recorded a 26.1 per cent revenue increase in 2025, driven largely by strong demand for its AI server business, which has become a key growth engine.
The decision comes amid significant challenges facing the global smartphone industry. Manufacturers are grappling with a severe memory chip shortage, which has pushed up component costs and is expected to persist as AI infrastructure development continues to consume large volumes of chips. Prices of RAM have reportedly quadrupled in recent months, prompting suppliers like Micron to scale back consumer-focused brands in favour of more profitable enterprise markets.
Industry analysts also point to the maturing smartphone market, where incremental hardware improvements have slowed upgrade cycles. Outside dominant players such as Apple and Samsung, smartphone makers face intense competition from Chinese brands including Xiaomi, Vivo and Huawei, particularly in price-sensitive markets.
Asus was once a notable player in the Android ecosystem, best known for its ROG Phone gaming series, which featured high-end processors, advanced cooling systems, gaming accessories and legacy features such as headphone jacks. However, the devices were positioned at premium price points, with the latest ROG Phone 9 Pro starting at around $1,200.
While existing Asus smartphones are expected to continue receiving software updates, the company’s update policy has been relatively limited. Recent flagship models are guaranteed only two Android OS upgrades and between four and five years of security updates.
Speculation had recently emerged that Asus might enter the DRAM manufacturing space amid rising memory prices. However, the company later dismissed the reports, stating that it has no plans to invest in memory fabrication facilities.
