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Asus confirms end of smartphones: focus on AI

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It’s a shock for fans: the end of Asus smartphones is now official and marks the end of an era for our mobile devices. The manufacturer is moving away from consumer mobile devices to bet everything on artificial intelligence, deemed much more profitable. We explain why this bold gamble changes everything for the brand’s future and your device’s support.

Asus ends its smartphone era: the end of an epoch

Jonney Shih confirms end of Asus Zenfone and ROG Phone smartphone production to focus on AI

Official confirmation: Zenfone and ROG Phone are finished

It’s official, the verdict came down on January 16th in Taiwan. Jonney Shih, the brand’s president, delivered the news directly to the assembly. Asus confirmed the definitive halt of its smartphone production. It’s no longer a rumor, but an official decision.

This sudden discontinuation affects the manufacturer’s two flagship lines: the mainstream Zenfone series and the ROG Phone gaming line.

Asus will no longer add new phone models in the future. It’s a strategic decision, not a bankruptcy, and that changes everything going forward.

A cutthroat mobile market: the real reason for the withdrawal

The smartphone market is saturated, dominated by a handful of unshakeable giants. Fierce competition makes profitability almost impossible for secondary players like Asus. Margins are shrinking dramatically against the giants.

This decision appears to be a pragmatic and intelligent choice by the group. Asus is not throwing in the towel; the brand chooses to reallocate its resources where it can truly make money.

In short, they crunched the numbers and preferred to leave the poker table.

The Great Pivot: Artificial Intelligence as the New Eldorado

But then, if Asus is letting go of phones, it’s for turning to what exactly? The answer is two letters: AI.

“All in AI”: follow the money

Behind Asus’s smartphone exit lies an implacable financial strategy: “All in AI”. Why struggle when the infrastructure division is booming? We’re talking about an explosive growth of AI servers of +100%, exceeding 100 billion Taiwanese dollars.

Strategic Comparison: Smartphones vs. AI Servers at Asus
Business Sector Market Context Performance & Potential
Smartphones (Zenfone, ROG) Saturated, hyper-competitive market Low margins, difficult profitability
AI Servers Booming market +100% growth, very high profitability

Servers, Robots, Glasses: The Future Face of Asus

Zenfones are over. This shift requires a redeployment of R&D teams towards promising sectors, perfectly illustrating the transformation of jobs by AI at the Taiwanese giant.

Here are the group’s new priority projects:

  • High-performance AI servers.
  • Robotics and automation.
  • Smart glasses and intelligent devices.

These projects now rely on agentic AI that takes concrete action.

Ripple Effects: What This Means for You

This strategic shift looks good on paper, but concretely, what is the impact for customers and the rest of Asus products?

Zenfone/ROG Owners: Don’t Panic About Support

Do you have a Zenfone or ROG? Don’t worry, the brand isn’t leaving you high and dry. Customer support is maintained for all current users.

But what does this “maintained support” really mean for you? Software updates and warranty assistance will continue to be provided for models already on the market.

Your phone won’t turn into a brick. It will remain functional.

The Domino Effect: Will Asus PC Prices Increase?

Let’s talk about the blind spot of this decision related to Asus’s smartphone discontinuation. The rush towards AI creates massive demand for certain components, especially memory. This strain on the supply chain affects other products.

This component shortage results in an inevitable increase in production costs for PCs.

Expect your next Asus laptop bill to be a bit higher. It’s the price to pay for the brand to play in the big leagues of AI.

In summary, Asus trades its smartphones for ultra-profitable AI servers. A purely business decision that leaves Zenfone fans out in the cold, even if support continues. It remains to be seen if this technological gamble will pay off as much as a royal flush… or if our future PCs will pay the high price!