Asus Smartphone Business on Indefinite Hiatus
▼ Summary
– Asus chairman Jonney Shih has confirmed the company is winding down its smartphone business and will no longer release new phone models.
– The company will instead shift its focus to developing AI products, such as robots and smart glasses.
– Asus’s Zenfone and ROG Phone lines struggled due to poor software support and high prices in a niche, shrinking market.
– Existing Asus phones will continue to receive updates, but the company’s update policy has been less generous than industry leaders.
– This decision reflects a broader industry trend where manufacturers are exiting the smartphone market as consumers upgrade less frequently.
The smartphone market has become an exceptionally challenging arena, and Asus is the latest company to step back from the fray. Chairman Jonney Shih has confirmed that Asus will no longer introduce new mobile phone models, placing its smartphone business on an indefinite hiatus. The company’s future focus will shift toward developing AI-driven products, including robotics and smart glasses. This strategic pivot marks a significant retreat from a sector where Asus struggled to gain substantial traction against dominant players.
During a recent company event in Taiwan, Shih outlined this new direction. He described the approach as an “indefinite wait-and-see” stance, leaving the door technically open but signaling no imminent return. For consumers, this means don’t expect a new Zenfone or ROG Phone from Asus in 2026. The decision reflects the harsh realities of the current mobile landscape, where even dedicated niches have proven difficult to sustain profitably.
Asus’s phone divisions faced distinct challenges. The Zenfone line carved out a small following by offering more compact and affordable devices than many competitors. However, it failed to compete on software support, with update policies that lagged far behind industry leaders. The ROG Phone series targeted the gaming community with high-performance features like advanced cooling systems, multiple ports, and specialized accessories. Yet, its premium pricing, often exceeding flagship prices from giants like Samsung, limited its appeal. The market for dedicated gaming phones outside of mainstream options appears too narrow to support such a costly venture.
Support for existing devices will continue per Asus’s existing commitments, though these were never a strong selling point. For instance, the high-end ROG Phone 9 Pro is promised only two major OS updates and five years of security patches. Recent Zenfone models similarly receive just two Android version upgrades and four years of security support. This level of post-purchase software support has become a key battleground in the industry, and Asus’s offerings did not measure up to customer expectations.
The smartphone business is a tough business, and Asus’s exit is part of a broader industry trend. As upgrade cycles lengthen and market consolidation continues, smaller players find it increasingly difficult to justify the enormous investment required. Shih’s comments suggest a return is highly unlikely unless market conditions shift dramatically. For now, Asus joins a growing list of OEMs reallocating resources away from smartphones, betting instead on emerging technologies where they hope to find more fertile ground for growth and innovation.
(Source: Ars Technica)
