Asus has confirmed that it is stepping away from making Android smartphones, ending both its Zenfone and ROG Phone product lines, not because of declining demand or technical failure, but to redirect resources toward artificial intelligence development.
The announcement was made by Jonney Shih, chairman of Asus, during the company’s year end gala in 2025. Shih said the company would no longer add new mobile phone models going forward, although existing customers will continue to receive software updates and warranty support for now. Internally, teams and funding previously dedicated to smartphones will instead be reassigned to projects such as AI robots, smart glasses, and other AI driven hardware, as reported by BGR.
What makes the decision controversial is that Asus was not struggling in the smartphone space. Its Zenfone lineup offered relatively affordable Android devices with competitive specifications, while its ROG Phone series carved out a strong niche among mobile gamers with features like advanced cooling systems, high refresh rate displays, and physical gaming controls. Some ROG models were considered best in class for performance focused users, a segment with very few alternatives.
An Asus ROG Tessen Controller
Rather than exiting due to losses, Asus is following a broader industry trend of chasing AI investment. As PC and hardware manufacturers race to position themselves as AI first companies, traditional product lines are increasingly being sacrificed to free up engineering talent and capital. While this may make sense from a corporate strategy perspective, it reduces competition in an already consolidated smartphone market.
The Android ecosystem is dominated by a small group of manufacturers, particularly in North America. With Asus joining companies like LG and Nokia in exiting smartphone production, consumers are left with fewer choices. Less competition typically leads to higher prices, slower innovation, and more uniform device designs. This is especially concerning in the budget and enthusiast segments, where Asus offered meaningful alternatives to mainstream brands.
The impact is most severe for mobile gamers. The ROG Phone series was one of the few purpose built gaming smartphone lines available globally. With its discontinuation, brands like RedMagic are left with little direct competition, narrowing options for users who want hardware designed specifically for high performance mobile gaming.
Although Asus has hinted that this move could be a pause rather than a permanent exit, there will be no new Zenfone or ROG Phone models released in 2026. For now, the decision highlights a growing tension in the tech industry, where enthusiasm for AI is reshaping product priorities, sometimes at the expense of consumer choice.