Asus Bows Out of Smartphone Race, Bets Big on AI Future

Asus is calling time on its smartphone chapter, betting the future lies in AI robots and smart glasses—not in chasing the next Zenfone.

Asus CEO Jonney Shih confirmed the company will no longer add new mobile phone models, signaling a strategic pivot to AI-driven products. "Asus will no longer add new mobile phone models in the future,"

The ROG Phone 9 Pro, Asus’ flagship gaming device, starts at $1,200 but will receive only two OS updates and five years of security patches—a stark contrast to industry standards. This decision aligns with the company’s 26.1% revenue growth in 2025, driven by a doubling of its AI server business.

The smartphone market’s maturity and Chinese OEM dominance have made innovation increasingly difficult.

Asus exit follows LG’s mobile division shutdown, a precedent for irreversible exits from the sector. "The possible end of Asus phones further narrows the market, leaving phone buyers with fewer choices," one analyst noted.