ASUS Exits Smartphone Business, Reallocate Resources To Business PCs & “Physical AI” Instead

Low Boon Shen
16 Min Read

There has been a lack of news on new ASUS smartphones, and it turns out the company has no future plans on new ones for the foreseeable future. ASUS chairman Jonney Shih (施崇棠) confirmed to Taiwanese media that the company will no longer introduce new smartphones, instead putting focus on business PCs and β€œPhysical AI” – meaning AI-powered products.

No More ASUS & ROG Smartphones

Responding to inquiries regarding the fate of ASUS’s smartphone business, Shih said: β€œASUS will not introduce new smartphone models in the future,” though the company β€œwill continue supporting its smartphone’s users.” The whole ordeal sounds somewhat similar to Micron’s exit from consumer segment, with AI being such a huge moneymaker that made it impossible to ignore. Granted, with only two active lineups (Zenfone and ROG Phone) existing prior to this closure announcement, it’s hardly sustainable given the intense competition seen in the smartphone market today.

Moving forward, the company will be reallocating its resources from its smartphone division towards business PCs and AI products, namely AI robots and AI glasses. Per Taiwanese media INSIDE, this move is to utilize its smartphone team’s experience with Qualcomm chipsets, in particular Snapdragon processors which are applicable to business PCs (Qualcomm Snapdragon X series), or edge AI devices (featuring Qualcomm Dragonwing).

ASUS intends to pivot itself towards a new strategy called β€œAll In AI”, with the goal of addressing the market from datacenters to consumer products. The company recently saw a 100% YoY jump in datacenter income, which contributed around 20% of its overall revenue in Q3 2025, above its projected 10-15% revenue share; this segment is also the main contributor to the company’s recent growth, making it a no-brainer in terms of pivoting its smartphone resources into AI from a business standpoint.

Pokdepinion: Given how little market share ASUS has in the smartphone market, it’s not too surprising.

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