In a groundbreaking move, ASUS has announced a decisive shift in its business strategy, stepping away from the smartphone market entirely to focus on artificial intelligence (AI) initiatives. Chairman Jonney Shih confirmed during a recent year-end banquet on January 16, 2026, in Taipei that the company will cease the introduction of new smartphone models, redirecting its research and development efforts toward commercial personal computers and innovative ‘physical AI’ technologies, which encompass robotics and smart eyewear.
During an interview prior to the event, Shih stated unequivocally, "ASUS will no longer introduce new mobile phone models in the future." This revelation casts uncertainty over the future of popular product lines such as the Zenfone and ROG Phone. However, he reassured existing smartphone users that support would continue, echoing previous reports indicating that ASUS had no plans to release new models in 2026 while still providing warranties and software updates for current devices.
The banquet also highlighted ASUS’s commitment to going "all in on AI," with Shih outlining the company's ambitious strategy that encompasses not only commercial PCs but also advances in physical AI, targeting areas like AI-driven robots and augmented reality glasses.
From a financial perspective, Shih proudly noted that ASUS experienced a remarkable 26% growth in revenue year-over-year for 2025. The server division achieved an impressive milestone, surpassing NT$100 billion in revenue ahead of projections. In the third quarter of 2025 alone, server revenue reportedly more than doubled compared to the previous year, contributing approximately 20% of total revenue for that quarter.
ASUS has been actively expanding its AI server offerings, integrating NVIDIA’s cutting-edge platforms. The company previously announced that AI POD systems powered by NVIDIA GB300 NVL72 and servers utilizing NVIDIA HGX B300 have commenced shipping, positioning ASUS favorably within the ongoing AI server upgrade cycle.
Shih did mention challenges related to supply chain issues, particularly concerning memory shortages and rising memory costs, explaining that these price hikes could potentially impact non-AI products. Taiwanese media outlets have reported that PC manufacturers, ASUS included, are contemplating adjusting their prices in response to these increasing memory expenses.
Earlier this month, ASUS officially communicated a price increase to its partners, a decision that was met with some controversy as the company requested the removal of the announcement from public view, which the outlet refused to do. This situation raises questions about the balance between innovation and cost management in a rapidly evolving industry.
What do you think about ASUS's bold move to abandon smartphones? Is it a wise strategy to focus solely on AI, or is it a gamble that could backfire? Join the conversation and share your thoughts!
