Asus Exits The Smartphone Market To Focus On AI Industries

Asus says they will develop AI robots, glasses and "Physical AI" solutions.

Asus has officially calling it a day on its smartphone business to go all-in on AI. The company’s Chairman Jonney Shih shared the update himself, making it clear that we shouldn’t expect any new Zenfone or ROG Phone from them in the future. Instead, they are taking all that engineering talent and redirecting it towards “Physical AI.”

(credit: Asus)

The announcement went down during their massive year-end gala at the Taipei Nangang Exhibition Centre on 16 January 2026. During an interview before the main event, Shih explained that they are pausing smartphone launches to focus on commercial PCs and the sort of tech that is going to power the next industrial revolution.

The theme for the night was all about AI leading the future, with a heavy emphasis on their new motto: “Ubiquitous AI, Incredible Possibility.” Shih seems pretty convinced that the world is about to be filled with artificial brains capable of learning on their own, and he wants Asus to be right at the front of that queue.

According to Asus press release, the company says they are:

“Actively advancing Physical AI solutions, emphasising it as a key frontier in AI development. To this end, Asus will accelerate its deep cultivation of AI robots and robotics as well as AI glasses, taking a leading position as a holistic AI company as it strives to open up unparalleled possibilities for global users.”

This is definitely a bit of a blow for the mobile gaming crowd. With Asus bowing out, the ROG Phone line is presumably history, leaving RedMagic as the only real gaming phone left on the market.