ASUS, known for its innovative technology, is taking a pivotal step by discontinuing new smartphone releases, striving to harness the power of AI. Chairman Jonney Shih has confirmed that ASUS’s future endeavors will pivot towards integrating AI into their product lineup, focusing on commercial PCs, robotics, and smart glasses. This shift signifies a trend where ASUS prioritizes the burgeoning AI market over its established smartphone lines, including Zenfone and ROG Phone. While smartphone support continues, ASUS aims to lead in ‘physical AI.’ This change reflects broader shifts in technology priorities and emerges from ASUS’s rapidly growing AI server business. The following chapter explores ASUS’s strategic pivot, its impact on the tech landscape, and what this means for consumers and businesses alike.
ASUS’s Strategic Pivot: Embracing AI Over Smartphones
In a significant shift marking a new chapter for ASUS, the Taiwanese tech giant is steering away from its established smartphone market to dive deep into the world of artificial intelligence. Chairman Jonney Shih recently revealed this transformative strategy at the company’s year-end banquet in Taipei, declaring that ASUS will halt the introduction of new smartphone models to focus its resources on AI-driven innovations such as commercial PCs and ‘physical AI’ devices including robotics and smart glasses.
The announcement marks a pivotal moment for ASUS, historically known for its Zenfone and ROG Phone lines, which will no longer see new additions. While fans of these phone lines might be left speculating about their future, Shih assured that ASUS will continue to provide support for existing smartphone users. This move aligns with earlier reports indicating that 2026 would see no new phone model releases, though warranty and software support would persist.
Embracing the AI Era
ASUS’s pivot towards AI is not merely a strategic gamble but a calculated response to rising demands and opportunities within the AI landscape. The company’s focus includes expanding its commercial PC offerings and delving into what it terms ‘physical AI,’ aiming to revolutionize sectors with advanced robotics and AI-enhanced devices like smart glasses. This move signals ASUS’s intent to be at the forefront of AI technology, a sector that promises significant growth in the coming years.
Financially, ASUS is well positioned to make this transition. The company experienced a robust 26% increase in revenue for 2025, with its server business alone surpassing the NT$100 billion mark, exceeding expectations. The heightened revenue surge was largely driven by the implementation of ASUS’s AI server lineup, which capitalizes on NVIDIA’s cutting-edge platforms. Notable among these is the AI POD systems based on NVIDIA GB300 NVL72 and servers featuring the NVIDIA HGX B300, heralding a new upgrade cycle in AI server technology.
Navigating Supply-Chain Challenges
As ASUS accelerates its AI ambitions, it faces logistical challenges typical of any industry giant. Shih highlighted supply-chain pressures, particularly relating to memory shortages and the upward trend in memory pricing. These challenges are pertinent not only to AI products but can ripple across the broader ASUS portfolio, potentially leading to price adjustments. Earlier in January, ASUS addressed these rising costs by notifying partners of imminent increases in product prices.
While ASUS’s exit from smartphones and focus on AI sets a bold new direction, it’s not without risks tied to market adaptation and competition. However, ASUS’s proactive strategy reflects a nimble approach to quickly evolving tech landscapes. This pivot is part of a broader shift where tech companies are aiming to capitalize on AI’s growing importance, echoing wider industry movements highlighted in sources like AI tools on itcarolina.com.
The decision by ASUS underscores a strategic foresight, as companies continue to navigate a fast-paced market dominated by rapid technological advancements and shifting consumer demands. As they pivot from smartphones to AI, the impact of this transition will be closely watched by industry analysts and competitors alike.
Final thoughts
ASUS’s decision to prioritize AI innovation marks a notable shift in the technology industry, signaling an increased focus on integrating AI into everyday consumer and business products. Chairman Jonney Shih’s confirmed plans to discontinue new smartphone models emphasizes ASUS’s commitment to AI-driven growth. Existing smartphone users will continue to receive support, but ASUS’s strategic pivot towards AI presents new opportunities and challenges for tech enthusiasts and consumers alike. As ASUS innovates within the AI space, it sets new benchmarks for technology, nudging the industry towards a future where AI is more prevalent and influential.