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Asus quits smartphones forever to chase AI gold rush instead

Maria had been waiting two years for the next ROG Phone. As a mobile gaming enthusiast, she’d saved up specifically for Asus’s latest powerhouse, knowing it would deliver the kind of performance other brands couldn’t match. Last week, she finally decided to check for release updates.

What she found instead was devastating news: there would be no new ROG Phone. Ever. Asus quits smartphones entirely, leaving loyal fans like Maria scrambling for alternatives that simply don’t exist in quite the same way.

Her story isn’t unique. Across gaming forums and tech communities, longtime Asus phone users are grappling with the reality that a brand they trusted has permanently walked away from the mobile market.

The End of an Era for Asus Mobile

When Asus quits smartphones, it marks the end of something genuinely special in the mobile world. This wasn’t just another generic phone maker throwing in the towel – Asus carved out distinct niches that bigger brands largely ignored.

The company held only 2.8% of the global smartphone market, according to Tech in Asia figures. But numbers don’t tell the whole story. Asus built phones for people who actually cared about specs, performance, and features that mainstream brands treated as afterthoughts.

“Asus phones were never about mass appeal,” explains mobile industry analyst Sarah Chen. “They were about doing specific things exceptionally well, whether that was compact flagship design or gaming performance that made other phones look like toys.”

The Zenfone series earned praise for clean Android experiences and surprisingly manageable sizes when everyone else was racing toward tablet-sized screens. Meanwhile, the ROG Phone line pushed mobile gaming to extremes with advanced cooling systems, customizable controls, and raw power that often embarrassed flagship competitors.

During an internal company meeting, Asus president Jonney Shih delivered the final verdict to employees: no more smartphones. The decision officially confirmed what industry watchers suspected when the company’s 2026 phone lineup mysteriously disappeared from development schedules.

What This Massive Shift Actually Means

Understanding why Asus quits smartphones requires looking at the brutal realities of today’s mobile market. The smartphone business has become a winner-takes-most battlefield where only the biggest players can afford to compete effectively.

Here’s what Asus was facing in the smartphone market:

  • Razor-thin profit margins that made sustainable growth nearly impossible
  • Marketing costs that often exceeded development budgets
  • Component price volatility that made long-term planning difficult
  • Consumer preference increasingly dominated by just a few major brands
  • Retail partnerships that favored high-volume manufacturers

The company’s smartphone division had essentially become a side project compared to its core strengths in PC components, gaming laptops, and enterprise hardware. For Asus, continuing to pour resources into a crowded, slow-growth segment made less financial sense than pivoting toward artificial intelligence.

“The smartphone market has consolidated to the point where being ‘pretty good’ isn’t enough anymore,” notes tech strategist Mike Rodriguez. “You either need Samsung or Apple-level scale, or you need to find a completely different game to play.”

Asus chose the different game. The company is now redirecting its smartphone resources toward AI hardware development, including servers, specialized laptops, robotics, and connected devices.

Asus Business Segment Market Position Future Investment
Smartphones 2.8% global market share Discontinued
Gaming PCs/Laptops Top 3 globally Maintaining
Motherboards Market leader Expanding
AI Hardware Emerging player Major focus

Who Gets Left Behind and What Happens Next

The immediate impact hits hardest on specific user groups who relied on Asus phones for features other manufacturers either ignore or handle poorly.

Mobile gamers face the biggest challenge. ROG Phones offered cooling solutions, gaming-specific controls, and performance optimization that mainstream flagships simply don’t prioritize. Finding alternatives means accepting compromises that serious mobile gamers never had to make before.

Photography enthusiasts who preferred Asus’s computational photography approach will also need to adapt. The Zenfone series had developed a distinct image processing style that differed meaningfully from the heavily processed look that dominates most smartphone cameras.

Power users who appreciated clean Android experiences without heavy manufacturer skins now have fewer options. While Google Pixel phones offer pure Android, they don’t match the hardware configuration flexibility that Asus provided.

“This creates real gaps in the market that won’t be easily filled,” observes consumer electronics researcher Lisa Park. “Asus served specific needs that the major players either can’t or won’t address.”

The broader implications extend beyond individual consumers. Asus’s exit reduces overall competition in the smartphone space, potentially leading to less innovation pressure on remaining manufacturers.

For Asus itself, the pivot toward AI represents a calculated bet on future growth. The company is leveraging its expertise in high-performance computing hardware to build AI servers, machine learning accelerators, and specialized devices for enterprise customers.

This strategy aligns with broader market trends. AI hardware demand is exploding as companies rush to implement machine learning capabilities. Unlike the saturated smartphone market, AI hardware offers higher margins and less direct competition from established giants.

“Asus is essentially trading a declining niche for a growing opportunity,” explains industry analyst David Kim. “It’s painful for phone fans, but it’s probably the right business decision.”

Current Asus phone owners don’t need to panic immediately. The company will continue providing software updates for existing devices according to their original support timelines. However, anyone planning to stick with their ROG Phone or Zenfone long-term should start researching replacement options.

The secondary market for Asus phones might actually see increased activity as collectors and enthusiasts try to secure backup devices or models they missed. ROG Phones, in particular, could become sought-after items among mobile gaming communities.

FAQs

Will Asus continue supporting existing smartphones with updates?
Yes, Asus will honor existing software update commitments for current phone models, but no new devices will be released.

What’s the best alternative to ROG Phone for mobile gaming?
RedMagic and Black Shark phones offer gaming-focused features, though neither quite matches ROG Phone’s overall package.

Is Asus completely leaving the mobile device market?
They’re exiting smartphones specifically, but may continue with tablets, smartwatches, or other mobile accessories.

Why is Asus focusing on AI instead of phones?
AI hardware offers higher profit margins and faster growth potential compared to the saturated smartphone market.

Will this affect Asus laptop or PC component prices?
Unlikely – those are separate business units with their own supply chains and pricing strategies.

Could Asus return to smartphones in the future?
While possible, the company’s statements suggest this is a permanent strategic shift rather than a temporary pause.

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