Asus is closing the chapter on its smartphone division, ending more than a decade of attempts to carve out a competitive niche in an increasingly crowded market. The decision, confirmed during a recent executive event in Taipei, reflects a strategic pivot toward AI-driven hardware and commercial computing—areas where the company has seen rapid growth.
Sources close to the company describe this as a long-anticipated move, given Asus’s gradual reduction of smartphone launches over the past three years. The brand’s last two releases—the ROG Phone 9 FE and Zenfone 12 Ultra—were met with muted market reaction, despite strong technical specifications. While exact sales figures remain undisclosed, industry analysts suggest these models underperformed expectations, contributing to the decision to exit.
Asus will continue supporting existing devices through software updates and warranty services, but no new smartphones are planned for 2026 or beyond. The company’s focus now shifts to AI servers, commercial PCs, and physical AI applications such as robotics and smart glasses—sectors where it claims to have achieved 100% revenue growth in 2025 alone.
This transition comes amid a challenging period for mid-tier Android brands. While Asus once positioned itself between budget and premium segments with its Zenfone series, rising competition from both established players and emerging startups has compressed margins. The company’s total revenue for 2025 reached approximately $23.4 billion, up 26% year-over-year, but smartphone contributions to that figure are believed to have declined significantly.
Industry observers note that Asus’s exit doesn’t eliminate its presence from the broader tech ecosystem—it remains a key player in gaming laptops, workstations, and AI infrastructure. However, the absence of new flagship smartphones could further reduce its visibility among consumers who rely on the brand for performance-oriented devices.
For now, Asus’s smartphone legacy lives on through its existing user base, but the company appears to have made a calculated bet on where future growth lies—one that no longer includes mass-market handsets.
