Asus is reportedly hitting the pause button on its smartphone division. According to recent reports citing company leadership, the Taiwanese technology giant plans to redirect its research and development (R&D) resources away from mobile devices and toward high-growth sectors like artificial intelligence (AI) hardware.
Strategic Pivot Toward AI Ecosystems
During a recent corporate event in Taipei, Asus Chairman Jonney Shih reportedly announced a temporary halt to the launch of new smartphone models. This strategic shift moves the company’s focus toward commercial PCs, AI-powered robots, and smart glasses. While the company will continue to support its existing mobile users, reports suggest that no new models will be added to the Zenfone or ROG Phone lineups for the foreseeable future.
Rising Costs and Market Pressures
A significant factor behind this decision involves the current state of the global supply chain. The industry is currently facing a sharp increase in RAM and memory prices, which has placed immense pressure on the profitability of non-AI specialized hardware. By pivoting, Asus aims to capitalize on the "paradigm shift" toward physical AI devices which offer greater market expansion potential.
Support for Current Users
Despite the halt in new hardware releases, Asus has committed to maintaining its relationship with current customers. The company plans to provide ongoing software updates, maintenance, and warranty services for existing handsets. However, retailers in certain regions may soon find it difficult to restock current inventory as the company transitions its manufacturing priorities.
- Key Focus Areas:
- Next-generation commercial PCs
- AI-driven robotics
- Innovative AI smart glasses