ASUS exits smartphone space to focus on Physical AI and commercial PC segment

At the beginning of January 2026, a report suggested that ASUS was unlikely to launch any new smartphones this year. That speculation has now been officially confirmed. According to a report by INSIDE, ASUS is exiting the smartphone business entirely.
During the company’s “2025 Year-End Gala” held on January 16th, 2026, at the Taipei Nangang Exhibition Center, ASUS Chairman Jonney Shih confirmed that the brand will no longer manufacture new smartphones. However, existing users don’t need to worry, as ASUS will continue to provide maintenance services, software updates, and honour warranty support for current devices.
Shih also revealed that the company is redirecting its research and development resources away from smartphones towards Physical AI, including areas such as robotics and smart glasses, as well as its commercial PC segment.
Financially, ASUS had a strong year. The company reported revenue of TWD 738.91 billion (around $23.4 billion) for 2025, marking a 26% increase compared to 2024. Its AI server business performed particularly well, achieving 100% growth and doubling its original target.
INSIDE also reported that ASUS has acknowledged ongoing memory shortages and rising component prices, both of which are putting increased pressure on its non-AI product categories. Addressing the situation, Jonney Shih noted that price adjustments could be one possible response, while also emphasising that ASUS plans to manage costs through design optimisation and closer coordination across its supply chain.