In a shocking move, ASUS is shifting its focus entirely to AI, leaving the smartphone market behind. This decision, confirmed by Chairman Jonney Shih, has sent ripples through the tech industry, especially given ASUS's significant presence in the smartphone space.
But here's the twist: ASUS is not just dipping its toes into AI; it's going all in! The company plans to halt the release of new smartphone models and redirect its research and development efforts towards commercial PCs and physical AI devices. This includes a focus on AI robots, robotics, and smart glasses, as revealed by Shih at ASUS's 2025 year-end banquet in Taipei.
This announcement casts a shadow of uncertainty over the future of the Zenfone and ROG Phone lines, which have been staples in ASUS's smartphone portfolio. However, the company assures existing phone users that support will continue, aligning with earlier reports that ASUS would maintain warranties and software support despite no new models in 2026.
ASUS's AI ambitions are not limited to software. They've been actively expanding their AI server lineup, leveraging NVIDIA's latest platforms. The company's AI POD systems and servers, based on NVIDIA's GB300 and HGX B300, are already shipping, positioning ASUS as a key player in the AI server market.
And here's where it gets controversial: the decision to shift focus to AI might not be without challenges. Shih acknowledged supply chain pressures, particularly memory shortages and rising memory prices, which could impact non-AI products. This has led to discussions about potential price adjustments for ASUS products, as reported by Taiwanese media.
ASUS has already confirmed a price increase for its products in January, as per a letter to its partners. This move has sparked further interest, especially since ASUS requested the removal of the post announcing the price hike, which was refused.
So, what does this mean for the future of ASUS and the tech industry? Will their all-in approach to AI pay off, or are there hidden pitfalls? Share your thoughts and predictions in the comments below. Remember, every major shift in strategy has its pros and cons, and we'd love to hear your take on this exciting development!
