Taiwanese tech giant ASUS is reportedly shifting its strategic focus from consumer smartphones too artificial intelligence advancement, according to comments made by company president Jonney Shih on January 16. The move signals a potential end to the Zenfone and ROG phone lines as the company plans to prioritize AI-driven technologies, including robotics and smart glasses, amid a broader industry trend[[1]. This decision comes as ASUS saw a 26.1% revenue increase year-over-year, largely fueled by growth in its AI server deployments[[1].
As the AI revolution gains momentum, companies are rapidly reassessing their strategic priorities. Asus president Jonney Shih has confirmed long-standing rumors that the company will discontinue the development of new smartphones. This strategic shift will allow Asus to pursue opportunities in the growing AI sector, with a particular emphasis on robotics and smart glasses.
VideoCardz reported on Shih’s remarks, which were captured by Taiwanese outlet Money UDN. Speaking at a year-end gala on January 16, Shih stated, “Asus will no longer add new mobile phone models in the future.” This means consumers are unlikely to see a new Zenfone or ROG Phone in the near future. However, Shih assured customers that existing models will continue to receive support during the transition. The move reflects a broader industry trend of companies prioritizing AI development amid increasing market demand.
According to Shih, “AI robot and robotics” and “AI glasses” represent two key areas of exploration for the company. Looking ahead to the 2025 financial forecast, the rationale behind this change becomes clear. While revenue increased by 26.1% year-over-year, much of that growth was driven by the expansion of AI server deployments. This shift underscores the increasing financial incentives surrounding AI infrastructure.
Are Smart Glasses a Strategic Bet for Asus?
Asus has never achieved market dominance in the smartphone space with its premium Zenfone line or gaming-focused alternatives. Both Google’s smart glasses and Apple’s have faced challenges in achieving widespread adoption. Nevertheless, Shih believes that advancements in AI technology will position these devices as more than niche products.
Inside TW reports that the company will evolve beyond the Qualcomm chips currently powering Asus smartphones. Consumers may see more of its laptops based on Snapdragon X processors. The Dragonwing platform will be crucial for developing more autonomous robots.
Shih also addressed the memory shortage, acknowledging that current laptops and other products may become more expensive. The company plans to rely on “design thinking and supply chain collaboration” to minimize the impact of rising RAM costs. Asus has already increased some MSRPs on laptops and desktops, but maintains it has sufficient components on hand to delay further price increases.
