In a bold move, ASUS Chairman Jonney Shih has announced that the company is shifting its focus away from smartphones and embracing the future of artificial intelligence (AI). This decision, revealed at ASUS's year-end banquet in Taipei, has sent shockwaves through the tech industry.
Shih's statement, "ASUS will no longer add new mobile phone models in the future," has left many questioning the fate of popular lines like the Zenfone and ROG Phone. However, the company assures existing phone users that they will continue to receive support and warranties.
But here's where it gets controversial... ASUS is not just exiting the smartphone market; they're diving headfirst into the world of AI. Shih described a comprehensive strategy, encompassing commercial PCs and what ASUS terms "physical AI." This includes exciting developments in AI robotics and smart glasses, pushing the boundaries of what AI can achieve.
On the business front, ASUS boasts impressive growth, with a 26% increase in revenue in 2025. Their server business and sales team have exceeded expectations, with server revenue growing over 100% in Q3 2025, accounting for approximately 20% of total revenue.
ASUS has been actively expanding its AI server lineup, leveraging NVIDIA's cutting-edge platforms. The company has already begun shipping AI POD systems based on NVIDIA GB300 NVL72 and servers based on NVIDIA HGX B300, positioning them at the forefront of the AI server upgrade cycle.
However, challenges lie ahead. Shih highlighted supply chain pressures due to memory shortages and rising memory prices, which could impact non-AI products. Taiwanese media reports suggest that ASUS, along with other PC vendors, is considering price adjustments to mitigate these costs.
In early January, ASUS officially announced a price increase for its products, a move that has sparked debate. The company's request to remove the announcement from media outlets was refused, leaving the decision open for public scrutiny.
This bold shift by ASUS raises intriguing questions. Are they making a wise strategic move, or is this a risky gamble? Will their focus on AI pay off, or will it leave a gap in the smartphone market? What impact will this have on consumers and the tech industry as a whole?
Join the discussion! Share your thoughts and predictions in the comments. Is ASUS's decision a brilliant innovation or a potential misstep?
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