Taiwanese technology firm Asus is dramatically restructuring its business, signaling a major retreat from the competitive smartphone market to focus on artificial intelligence development [[1]],[[2]], [[3]]. Chairman Jonney Shih confirmed the company will halt future smartphone development, including its popular Zenfone and ROG Phone lines, citing greater growth potential in AI-driven technologies like robotics and smart glasses. The move comes amid ongoing global component shortages impacting the tech industry and reflects a wider reassessment of priorities among major hardware manufacturers. Asus maintains it will continue to support existing smartphone users wiht software updates.
No More Smartphones?
Asus Chairman Discusses Reports of a Halt to Smartphone Production, Shifting Focus to AI
Asus is reportedly ending its production of smartphones, including those in its Zenfone and ROG gaming lines, to concentrate resources on artificial intelligence development. The decision, announced by Chairman Jonney Shih during a recent company event, signals a significant strategic shift for the Taiwanese tech giant.
According to reports, Shih confirmed the company will no longer develop new mobile phone models, instead prioritizing AI technologies like robotics and smart glasses. This move reflects a growing industry trend as companies reassess the potential of mobile versus emerging technologies.
“Computers and physical AI devices have greater growth potential than mobile phones, and this is an opportunity for Asus to grow,” Shih stated, encouraging employees to capitalize on the opportunities presented by AI. The company has pledged to continue providing support and software updates for existing Asus smartphones.
The decision was also influenced by ongoing component shortages and subsequent price increases, Shih added. The global chip shortage has impacted numerous tech manufacturers, forcing them to re-evaluate production strategies and investment priorities.
