ASUS Halts New Smartphones in 2026 to Focus on AI Shift

ASUS, the Taiwanese tech company known for its gaming phones and laptops, has confirmed it will not release any new smartphones in 2026. Chairman Jonney Shih made the announcement as part of a larger strategy to focus on artificial intelligence and other high-growth areas. The decision comes after years of challenges in the phone market, where costs have risen sharply and profits have stayed low.

Background

ASUS entered the smartphone business over a decade ago with models like the Zenfone series for everyday users and the ROG Phone line for gamers. These phones gained fans for their strong performance and unique features, such as advanced cooling systems in the ROG models and compact designs in some Zenfones. The Zenfone 12 Ultra came out early in 2025, followed by a limited ROG Phone 9 FE in Thailand. Before that, the ROG Phone 9 series launched with gaming-focused specs shared with the Zenfone Ultra.

The company has faced a tough market. A few big brands control most sales, leaving smaller players like ASUS with slim margins. Component prices, especially memory chips, have jumped due to shortages and demand from AI servers. Suppliers prioritize those more profitable areas, making it harder for phone makers to get parts at good prices. ASUS's phone sales make up only a small part of its overall revenue, which comes mostly from computers, laptops, and gaming devices like the ROG Ally handheld.

Rumors about trouble in the phone division started in late 2025. Distributors in Taiwan said they could no longer order new stock through normal channels. Reports suggested the division might shut down by the end of 2025. ASUS quickly responded to set the record straight. The company has run its phone business as a separate unit for years, and that setup stays the same.

Key Details

ASUS has no plans to launch new models under the Zenfone or ROG Phone brands in 2026. This means no updates to recent flagships like the Zenfone 12 Ultra or ROG Phone 9 Pro this year. The pause is temporary for now, described as a one-year break from the usual annual release cycle.

Support for Current Owners

Current phone owners will not lose out on help. ASUS promises to keep providing software updates, warranty repairs, and spare parts for all existing models. The company told partners that its smartphone operations continue, just without new products for 2026.

"We clearly communicated to telecom channels that its smartphone operations will continue and that maintenance, software upgrades, and warranty services for all existing products will not be affected."

• ASUS statement to media

Chairman Jonney Shih spoke at a year-end event, where he outlined the shift. He said the company is going "all in" on AI, pointing to areas like drones, smart glasses, and high-performance computing. ASUS sees these as better places to invest amid the phone market's struggles.

The memory market crisis plays a big role. Chip makers favor AI and servers over phones, driving up costs for everyone else. For ASUS, with its smaller scale in phones, this squeeze has made the business less viable. The company plans to enter memory module production in mid-2026, tying into its AI push.

What This Means

This move frees up resources for ASUS to grow in stronger areas. Its PC and laptop sales remain solid, and devices like the ROG Ally keep gamers loyal. AI is a key focus, with plans for AI PCs, cloud tools, and smart ecosystems. Drones and AI glasses could open new markets where ASUS has an edge from its hardware expertise.

For phone fans, the gap hurts. ROG Phone users wait over two years for a refresh from the 2024 model, and Zenfone buyers face nearly two years since the 2025 Ultra. Compact phones like the Zenfone 10, already hard to find, may not return soon. The market loses a niche player that offered gaming power and small sizes few others match.

ASUS leaves the door open for future phones, but nothing is certain beyond 2026. The company might return with bigger upgrades after the break, or it could wind down quietly if AI pays off more. Either way, the phone division runs on, handling support without new launches. This reflects wider trends: smaller brands step back as giants like Samsung and Apple hold ground, and AI draws investment from tech firms worldwide.

The shift highlights how fast tech priorities change. Phones once promised huge growth, but now AI and related fields look brighter. ASUS, with its roots in motherboards and graphics, is well-placed to chase those. Meanwhile, loyal customers hold onto their devices a bit longer, waiting to see if ROG or Zenfone makes a comeback.