During a company event in Taiwan, Asus Chairman Jonney Shih has confirmed the company will not launch new smartphones in 2026, shifting focus to artificial intelligence and robotics (via PCMag).
For years, Asus carved out a unique space in the smartphone world. Its Zenfone series was once celebrated for being one of the few compact flagship options available, while its Republic of Gamers (ROG) Phone line set the gold standard for mobile gaming hardware. However, it appears the pressure of a consolidating market and rising component costs has finally forced the company to hit the brakes.
The company’s decision to pause its smartphone journey isn’t a total surprise to industry insiders. Asus has struggled to gain a significant market share, recently sitting at less than 1% globally. While the ROG Phone 9 and Zenfone 12 Ultra were technically impressive, they remained niche products in a market dominated by giants like Apple and Samsung.
Financial reality played a huge role here. Reports indicate that the cost of critical components, specifically memory chips, has skyrocketed. With suppliers prioritizing high-volume manufacturers, smaller players like Asus face thinner margins that make the business unsustainable.
Instead of fighting for scraps in the smartphone arena, Asus is moving its talented R&D teams to “Physical AI” projects. This includes smart glasses, robotics, and commercial PCs. The company’s AI server business doubled its revenue in 2025, making it clear where the future profits lie.
If you currently own a Zenfone or an ROG Phone, there is no need to panic just yet. Chairman Jonney Shih emphasized that Asus will continue to support existing customers. This includes honoring warranties and providing software updates for devices already on the market.
However, the “all-in on AI” strategy suggests that once the current stock of the ROG Phone 9 and Zenfone 12 Ultra is gone, they won’t be replaced. In many regions, including the U.S., these devices are already showing as out of stock, marking the beginning of the end for these enthusiast-favorite lineups.
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