In a bold and potentially game-changing move, ASUS has decided to abandon its smartphone business entirely, shifting its focus entirely to artificial intelligence (AI) and related technologies. This announcement, confirmed by Chairman Jonney Shih during the company’s 2025 year-end banquet in Taipei on January 16, 2026, marks a significant pivot for the tech giant. But here's where it gets controversial: is this a visionary leap into the future, or a risky gamble that leaves loyal smartphone users in the lurch? Let’s dive in.
Shih’s statement was clear: “ASUS will no longer add new mobile phone models in the future.” This puts the beloved Zenfone and ROG Phone lines in jeopardy, though the company assures it will continue supporting existing users with warranties and software updates. This aligns with earlier reports (https://videocardz.com/newz/asus-to-skip-zenfone-and-rog-phone-launch-this-year) that hinted at a pause in smartphone development for 2026. And this is the part most people miss: while ASUS steps back from smartphones, it’s doubling down on what it calls “physical AI”—think robotics, smart glasses, and commercial PCs. Could this be the next frontier for the company, or are they spreading themselves too thin?
The “all in AI” strategy isn’t just a buzzword; it’s backed by concrete business growth. In 2025, ASUS saw a 26% year-over-year revenue increase, with its server business surpassing NT$100 billion ahead of schedule. Server revenue alone grew by over 100% in Q3 2025, accounting for nearly 20% of total revenue that quarter. This success is partly due to ASUS’s partnership with NVIDIA, as the company has been expanding its AI server lineup with systems like the NVIDIA GB300 NVL72-based AI PODs and HGX B300 servers (pictured above). But here’s the catch: with memory shortages and rising costs, will these AI ambitions come at the expense of affordability for non-AI products?
Shih didn’t shy away from addressing supply-chain challenges, noting that memory pricing pressures could impact non-AI product lines. Taiwanese media has already reported that PC vendors, including ASUS, are considering price adjustments due to these costs. In fact, ASUS confirmed a price increase for its products in early January (https://videocardz.com/newz/asus-officially-announces-price-hikes-from-january-5-right-before-ces-2026), though the company requested we remove that information—a request we politely declined.
So, what does this mean for the future of ASUS? Is their AI-focused strategy a brilliant move to stay ahead of the curve, or a risky bet that could alienate their core audience? And how will consumers react to potential price hikes on non-AI products? Is ASUS making the right call, or are they abandoning a market they’ve spent years building? Let us know your thoughts in the comments—this is one conversation you won’t want to miss. (Sources: Money UDN (https://money.udn.com/money/story/11162/9270783?from=ednsubcatelistcate), Inside TW (https://www.inside.com.tw/article/40522-asus-phone-nomore))
