ASUS Pauses Smartphone Expansion to Focus on AI

ASUS has confirmed it will suspend the launch of new smartphones in 2026 as part of a strategic realignment toward artificial intelligence and other core technology areas. The Taiwanese electronics maker’s decision marks a notable shift in priorities, reflecting changing market dynamics and the growing prominence of AI driven products and services.

Reports indicate that ASUS will not release any new Android smartphone models this year, including the Zenfone and Republic of Gamers ROG Phone series, both of which have been core components of its mobile product portfolio in recent years. In 2025 the company launched the Zenfone 12 Ultra, a flagship device with advanced camera and AI features, and variants of the ROG Phone 9 series, but it has now communicated to partners that no further mobile hardware will be introduced in 2026. This announcement comes after a period of limited smartphone output and underscored industry pressure from larger competitors.

ASUS has assured existing customers that software support, warranty coverage, updates, and after sales service for current devices will continue uninterrupted. Users of the Zenfone and ROG Phone lines have been told that the company will meet its obligations for repairs and maintenance, a measure that appears designed to maintain confidence among its established user base while it steps back from new hardware releases.

The shift in strategy does not formally signal a complete exit from the smartphone business, according to internal statements and industry reporting. Instead, analysts say the pause on new models could represent a period of reassessment or reallocation of resources to more profitable segments. ASUS retains the option to revisit smartphone development in the future should conditions change.

ASUS has historically maintained a presence in the Android ecosystem with its Zenfone lineup aimed at mainstream users and its ROG Phone series targeted at mobile gamers. These devices have featured leading hardware innovations, such as high refresh rate displays, powerful processors and custom gaming enhancements. Despite this, the company’s global market share has remained relatively small compared with major competitors such as Samsung, Apple and Chinese brands that dominate the mid and premium smartphone segments.

Industry analysts see multiple factors behind ASUS’s decision to pause new smartphone launches. Rising component costs, including memory chips and advanced mobile processors, have added financial pressure on manufacturers operating with narrow margins. At the same time, the global smartphone market has experienced slower growth, leading to consolidations where larger players with scale can better absorb fluctuations in demand and cost.

In recent years, ASUS has strengthened its position in other technology domains. The company has reported growth in its PC hardware business, gaming accessories and enterprise oriented products. At the same time, ASUS has invested in artificial intelligence related technologies and systems, reflecting broader industry trends where AI is reshaping how devices and platforms are designed, deployed and monetised.

At its 2025 year end event, ASUS leadership emphasised a future driven by AI innovation. Company executives highlighted AI enabled hardware such as robotics systems, AI sensors, commercial computing devices and hardware accelerators as areas of focus for research and development. This pivot aligns with shifting consumer demand and the wider technology industry’s embrace of AI driven computing.

From a martech perspective the move by ASUS highlights how the technology industry is redefining investments in hardware and services. Mobile phones, once at the centre of consumer tech strategy for many electronics makers, are now just one part of a larger landscape. AI driven experiences and infrastructure are increasingly seen as key differentiators in future competitiveness.

For marketing professionals and enterprise technology leaders, the ASUS decision underscores the importance of adapting to changing product ecosystems. As manufacturers shift toward AI platforms and intelligent devices, marketers will need to understand how consumer engagement evolves across connected experiences rather than purely through standalone mobile devices.

The pause also has implications for retailers and distributors that have sold ASUS smartphones in various markets. With no new devices for 2026, channel partners must shift inventory strategies and customer engagement to other product categories within ASUS’s broader portfolio.

Consumers who favour ASUS smartphones may experience a gap in hardware innovations this year. Reviews of the Zenfone 12 Ultra in 2025 highlighted its strong camera performance, generative artificial intelligence features and flagship performance, but the absence of follow up models could frustrate users seeking yearly updates.

In the gaming segment, where ASUS’s ROG Phone devices have a dedicated following, gamers are awaiting clarity on the future of high performance mobile hardware. The ROG Phone 9 series was well regarded for its performance, display and specialised gaming enhancements, but with no new launch planned for 2026, competitors in the space may gain an advantage.

Despite the uncertainty surrounding smartphone development, ASUS’s statement that its mobile operations will continue suggests that the company still values its existing installed base. Continued software upgrades and support services are critical for customer loyalty, particularly in premium segments where users expect long term device reliability.

Analysts will be watching closely to see whether this pause evolves into a longer term retrenchment or if ASUS eventually announces new phone models when market conditions improve. The broader trend of AI centric strategies by established technology companies suggests that innovation dollars may increasingly flow toward platforms and intelligent systems rather than traditional consumer electronics.

For now, potential ASUS smartphone buyers will have to look elsewhere for new devices in 2026, but the company’s shift toward AI and other growth areas reflects how the next wave of technology development is shaping the priorities of leading hardware makers.