ASUS Halts New Smartphone Development, Pivots to AI | Quick Digest
ASUS Chairman Jonney Shih confirmed a strategic shift, halting the development of new smartphone models in 2026 to focus resources on the rapidly growing Artificial Intelligence (AI) and server business. Existing smartphone users will continue to receive support and updates.
ASUS will not launch new smartphone models in 2026.
Company shifts focus and resources to Artificial Intelligence (AI) and servers.
ASUS Chairman Jonney Shih announced the strategic pivot.
Existing Zenfone and ROG Phone users will still receive support and updates.
The decision is driven by the booming AI server business's success.
This marks a significant change in ASUS's product strategy.
ASUS has announced a significant strategic shift, confirming that it will halt the development and launch of new smartphone models, including its Zenfone and ROG Phone series, in 2026. This pivotal decision was revealed by Chairman Jonney Shih during the company's year-end celebration in Taipei. Shih stated that ASUS is reallocating its research and development resources to fully commit to the burgeoning Artificial Intelligence (AI) sector, particularly focusing on AI servers, robotics, and commercial PCs. The move is largely propelled by the exceptional growth of ASUS's AI server business, which has seen its revenue surpass NT$100 billion ahead of schedule in 2025, with a year-over-year growth rate exceeding 100%. This segment now accounts for approximately 20% of ASUS's total revenue, signaling a clear shift in operational focus from consumer electronics to high-growth AI infrastructure and solutions. While new smartphone models will not be introduced, ASUS has reassured its existing customers that after-sales services, software updates, and warranty support for current Zenfone and ROG Phone devices will continue uninterrupted. This strategic pivot is seen as a response to the intensely competitive and low-margin global smartphone market, allowing ASUS to concentrate on more promising growth areas in the AI-driven technological landscape.
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