Asus Confirms Smartphone Business on Indefinite Hiatus
In a significant shift, Asus has officially confirmed that it will no longer add new mobile phone models to its lineup. This announcement comes from Asus chairman Jonney Shih during a 2026 kick-off event in Taiwan, as reported by Inside. The move effectively puts the company's smartphone business on an indefinite hiatus, leaving fans and industry watchers to ponder the future of brands like Zenfone and ROG Phone.
The Decline of Asus Smartphones
The decision isn't entirely surprising. Asus' smartphone offerings, particularly the Zenfone and ROG Phone lines, have struggled to gain significant market traction over the years. The Zenfone line, known for being slightly smaller and more affordable than competitors, lagged in support and update policies compared to market leaders like Samsung and Apple. Meanwhile, the ROG Phone line, targeting gamers with high-end specs and active cooling, proved too expensive for its niche market, with the ROG Phone 9 Pro starting at $1,200.
Support and Updates: A Continuing Concern
For existing Asus device owners, the immediate impact is minimal. Asus has assured that current devices will continue to receive updates. However, the company's track record in this area has been less than stellar. The ROG Phone 9 Pro, for instance, is only guaranteed two OS updates and five years of security patches. Similarly, the most recent Zenfones receive only two Android version updates and four years of security support. This falls short of the industry standard set by Samsung and Google, which typically offer longer support cycles.
Asus' Shift to AI
With the smartphone division winding down, Asus is redirecting its focus towards AI applications. Shih highlighted robots and smart glasses as key areas of interest moving forward. This pivot aligns with a broader industry trend where companies are exploring AI as a growth area, leveraging advancements in machine learning and computer vision.
The Appeal of AI Products
AI products like robots and smart glasses offer new avenues for innovation and differentiation. These devices can integrate advanced functionalities that go beyond traditional smartphone capabilities, potentially opening up new markets and consumer segments. For Asus, this shift could be a strategic move to position itself at the forefront of emerging tech trends.
The Smartphone Market's Maturation
Asus' decision also reflects the broader challenges faced by the smartphone industry. Today's market is characterized by mature technology with limited room for year-to-year improvements. Rising prices and longer device upgrade cycles further exacerbate the difficulties for niche players. Additionally, the rise of Chinese OEMs like Vivo, Xiaomi, and Huawei has intensified competition, making it harder for smaller brands to compete.
Lessons from the Past
The smartphone market has seen several OEMs exit the space in recent years. LG, once a significant player, eventually discontinued its mobile division after years of financial losses. Similarly, other brands that have taken breaks from releasing phones have struggled to return to the market. This pattern suggests that once a company steps away from the smartphone race, it's increasingly difficult to re-enter.
What Does This Mean for Consumers?
For consumers, Asus' exit means fewer choices in the Android ecosystem. While the Zenfone and ROG Phone lines may not have been top contenders, they offered alternatives to the dominant players. The loss of these options further consolidates the market around a handful of major brands, potentially limiting innovation and competition.
The Future of Asus
Shih's comments indicate that Asus won't completely abandon smartphones unless there's a significant shift in the market. However, the company's indefinite wait-and-see approach suggests a cautious stance. Given the current trends, a return to the smartphone market seems unlikely in the near future.
Conclusion
Asus' decision to halt smartphone production marks a notable moment in the tech industry. It underscores the challenges faced by OEMs in a crowded and competitive market. While Asus shifts its focus to AI, the impact of this move will be closely watched by industry analysts and consumers alike. The company's journey from a diverse product lineup to a specialized focus on AI products highlights the dynamic nature of the tech sector, where adaptation and innovation are key to survival.
