TAIPEI, Jan 21, 2026, 06:23 GMT+8
- Asus chairman Jonney Shih announced the company will halt introducing new smartphone models and shift its focus to AI hardware development.
- The move casts doubt on Asus’ Zenfone and ROG Phone series, with no fresh releases planned for 2026.
- Asus confirmed it will keep providing after-sales support for current phone users.
Asustek Computer chairman Jonney Shih announced that Asus will halt the release of new smartphone models, casting uncertainty over the future of its Zenfone and ROG Phone lines. The company is shifting its focus toward AI hardware. “Asus will no longer add new mobile phone models in the future,” Shih said, according to The Verge, which reached out to Asus for comment but had not heard back by publication time. (The Verge)
Smaller smartphone brands are feeling the pinch as upgrades slow and component costs climb. Meanwhile, firms are shifting focus toward AI servers and AI-ready PCs. Research firm IDC predicts a 0.9% drop in global smartphone shipments by 2026, citing rising memory chip prices that will drive up average selling prices. Low-to-mid range Android phones are expected to take the biggest hit. (Reuters)
Shih framed the move as part of an “All in AI” strategy, telling employees the company posted a “solid report card” despite ongoing trade and geopolitical challenges, Digitimes reported. The outlet noted Shih highlighted the AI server business hitting NT$100 billion in revenue earlier than expected. He also outlined plans to provide full-spectrum “AI factory” services, covering everything from design and manufacturing to after-sales support. (DIGITIMES Asia)
At the year-end event in Taipei, Shih revealed that resources once devoted to smartphones will now shift toward commercial PCs and “Physical AI”—AI embedded in devices interacting with the physical world, like robots or smart glasses, rather than just software. According to 9to5Google, quoting translated remarks, he also assured that support for current phone users would continue. (9to5Google)
Heise Online, referencing sources from Taiwan, reported that Shih encouraged his team to focus on a market approach he called “Ubiquitous AI. Incredible Possibilities.” According to the outlet, Asus saw a 26.1% jump in 2025 revenue, reaching NT$738.91 billion. Shih also highlighted tight memory supplies as a challenge, cautioning that this could push prices up on certain products. (heise online)
Asus tried to ease concerns earlier this month. On Jan. 2, it responded to distributor rumors in Taiwan, saying it had “no plans” to launch new smartphone models in 2026. The company confirmed it would continue with maintenance, software updates, and warranty support for current devices, according to Digitimes. The report also highlighted that Taiwanese PC rival Acer left the smartphone market in 2016 but later returned through a brand-licensing deal targeting India. (DIGITIMES Asia)
Asus has always targeted enthusiasts rather than chasing big carrier deals with its phone lineup. In February 2025, the company unveiled the Zenfone 12 Ultra, showcasing top-tier hardware paired with a suite of AI features built right into the device. (ASUS Pressroom)
Shih’s statement still allows for a possible reversal, but Asus hasn’t provided a timeline for resuming production. TechStock² pointed out that the company hasn’t clarified what “take care” actually means for users, raising doubts about long-term software updates, spare parts availability, and repairs if the pause lasts. (TechStock²)
This shift highlights the tough battle smaller Android brands face against Apple’s iPhone and Samsung’s Galaxy series at the premium level, while Chinese manufacturers dominate the volume segment. Gaming phones add another layer of challenge, as consumers demand fast hardware updates and extended support periods.
Asus didn’t unveil a new phone roadmap at the Taipei event. Instead, it’s placing its bets on AI servers, commercial PCs, and fresh “physical” devices to outperform another batch of handsets.
