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Asus signals shift away from smartphones as it doubles down on AI-driven devices

A major change appears to be underway at Asus, and smartphone fans may not like what it means. The Taiwanese electronics brand has confirmed that it is scaling back its smartphone business, raising doubts about future launches of its Zenfone and ROG Phone series.

Speaking at an event in Taiwan, Asus chairman Jonney Shih reportedly said, “Asus will no longer add new mobile phone models in the future.” Instead, the company plans to focus on AI-powered products such as humanoid robots and smart glasses.

Shih also outlined the company’s financial outlook, noting that Asus recorded a 26.1% increase in revenue for 2025. Its AI server business has emerged as a major growth engine, reinforcing the company’s shift toward artificial intelligence-led hardware.

The pause in smartphone development comes at a time when the industry is facing a severe memory chip shortage. This has already started pushing up device prices, with several manufacturers warning that supply constraints could last for months or even years as AI infrastructure continues to consume large volumes of chips.

RAM prices have reportedly jumped 4 times in recent months. Companies such as Micron have even shut down their consumer-facing brand, Crucial, to focus on the more profitable enterprise market.

Another challenge is the slowdown in smartphone innovation. Year-on-year upgrades have become less appealing, leading to longer replacement cycles. Outside the US, brands also face stiff competition from Chinese players like Vivo, Xiaomi, and Huawei.

Asus was once a key name in the Android ecosystem. It built a strong identity with gaming phones and premium devices, alongside its laptops, tablets, and foldables. The ROG Phone series, in particular, stood out for features like active cooling, multiple USB-C ports, gaming accessories, LED lighting, and headphone jacks. However, these phones were priced high, with the ROG Phone 9 Pro starting at $1,200 and currently unavailable in India.

While existing Asus smartphones will continue to receive updates, the company’s support window remains limited. For example, the ROG Phone 9 Pro is guaranteed only 2 OS upgrades and 5 years of security patches. Recent Zenfone models get 2 Android updates and 4 years of security support.

There were also rumours that Asus might enter the DRAM manufacturing space. However, a later report from a local publication ruled this out. The company clarified that it has “no plans to invest in memory fabs.”

For context, DRAM, or Dynamic Random Access Memory, is used across devices such as PCs, laptops, and smartphones.

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