Asus axes smartphones to double down on AI

Taiwanese vendor Asus has reportedly shelved plans to develop new smartphones in 2026 as it pivots resources towards emerging “Physical AI” projects spanning smart glasses and robotics.

Asus chairman Jonny Shih said the company would continue to monitor the smartphone market, but confirmed its handset unit will be redirected to support these newer initiatives. Economic Times reported Asus’ AI server division doubled revenue in 2025 and now contributes around a fifth of the company’s total earnings, underlining where its growth priorities lie.

Asus has built a reputation for niche smartphones, most notably its ROG Phone range aimed at mobile gamers, featuring shoulder trigger buttons and enhanced audio capabilities. However, its smartphone business is also facing headwinds from rising memory chip costs, which analysts have flagged as a key challenge for handset vendors this year.

More Articles you may be Interested in...