In a decisive break from its consumer smartphone ambitions, ASUS has confirmed that it will no longer develop or release new mobile phones. It is formally ending its Zenfone and ROG smartphone lineups.
The announcement was made by Chairman Jonney Shih during ASUS’s 2025 Year-End Banquet in Taiwan on January 16, 2026. This signals a full strategic pivot toward artificial intelligence and enterprise infrastructure.
The move marks a rare retreat from the competitive smartphone market by a major global hardware brand. And it also underscores how aggressively AI is reshaping corporate priorities across the tech industry.
Key Takeaways
- ASUS will stop releasing new smartphones altogether, effectively shutting down both its Zenfone and ROG phone development pipelines. While existing devices will continue to receive full support, no future models are planned.
- The company is shifting “all in on AI,” redirecting resources toward servers and AI-focused infrastructure after witnessing explosive growth in its enterprise business.
- ASUS’s server division reached NT$100 billion in revenue, far exceeding internal expectations and reshaping the company’s long-term strategy.
The End of Zenfone and ROG Phones
ASUS confirmed that no new mobile phone models will be introduced in 2026 or beyond, validating earlier reports from Digitimes. What was once speculation is now official policy.
Both the Zenfone and ROG Phone brands, long favored by Android enthusiasts and mobile gamers, will effectively come to an end. However, Jonney Shih emphasized that customers who have already purchased ASUS phones will continue to receive full software and hardware support, easing concerns over device abandonment.
This is not a temporary pause. The plan to exit smartphones may extend well beyond 2026, indicating a permanent strategic realignment rather than a short-term cost cut.
Why ASUS Is Abandoning Smartphones
The decision is rooted in numbers, not nostalgia.
ASUS reported:
- 26% year-over-year revenue growth
- Over 100% YoY growth in server revenue in Q3 2025
- The server business contributes around 20% of the total company revenue.
Notably, server growth was initially projected at just 10–15%, making the actual performance a decisive factor in shifting investment away from consumer phones.
In simple terms, AI infrastructure is scaling faster and more profitably than smartphones ever could.
Following an Industry-Wide AI Migration
ASUS is not acting alone.
Last year, Micron shut down its Crucial consumer RAM and SSD products, redirecting focus entirely toward AI servers. ASUS’s move reflects the same logic, which is that consumer hardware is volatile, margins are thin, and competition is relentless. While AI infrastructure offers sustained demand and long-term contracts.
As more companies chase enterprise AI growth, traditional consumer products are increasingly seen as distractions rather than core businesses.
What This Means for Consumers
For consumers, the impact is clear:
- No new ASUS smartphones going forward
- Continued support for existing Zenfone and ROG devices
- ASUS is shifting its identity away from consumer mobile hardware
For the industry, the signal is louder: AI is no longer a side business; it is the business.
ASUS’s exit from smartphones is not a failure story. It is a strategic acknowledgment that the future of hardware is being rewritten by AI workloads, data centers, and enterprise-scale systems, not pocket-sized devices.
Source: Asus stops expanding phone lineup, turns attention to AI and robotics.
