Asus says it will no longer make Android phones, turns focus on “physical AI”

The Taiwanese electronics manufacturer Asus has confirmed it will no longer make new Android smartphones and will focus on physical artificial intelligence (AI) products such as robots and smart glasses.

Asus outlined its new “strategic shift” towards AI at a year-end gala held on January 16th at the Taipei Nangang Exhibition Center, where it confirmed plans to stop launching new smartphones, effectively marking its exit from the market.

Speaking to reporters ahead of the event, Chairman Jonney Shih said Asus will fully shift its research and development focus to commercial PCs and “physical AI,” according to the Taiwanese website Inside.

Resources previously devoted to smartphone development will be reallocated to higher-growth areas such as robotics and AI-powered smart glasses, the company said.

While yet to be confirmed, the move means that the once-popular Zenfone lineup and ROG Phone, which found a firm user base in the gaming world, could be discontinued as early as this year.

Shih said that Asus will “continue to take care of existing brand phone users,” but noted that the company was still working out the details as it responds to an industry-wide “paradigm shift” driven by AI.

The decision is also seen as highly pragmatic. The Zenfone series struggled to compete with Apple and Samsung in an increasingly saturated market, while the ROG Phone occupied a niche that was difficult to justify given its high development costs.

By pivoting early and decisively toward AI, Asus is seeking to strengthen its competitive position. The company’s revenue rose 26.1% in 2025 from a year earlier, suggesting its aggressive push into AI is paying off. Its AI server business also grew at twice the planned pace.

At the same time, mounting supply-chain pressures, including memory shortages, are pushing up prices for non-AI products.

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