Asus Quits Smartphone Market, Shifts Focus to AI Hardware

• Asus chairman Jonney Shih confirmed the company will no longer produce new Android smartphones.
• The decision was announced during Asus's "2025 Year-End Gala," signaling a complete exit from the mobile phone market.
• The move is driven by increasing costs of AI-capable chips and memory components, making smartphone manufacturing less profitable.
• Asus plans to reallocate resources from its smartphone division to develop "commercial PCs and physical AI devices," including AI robots and AI glasses.
• This pivot marks the end for popular niche lines like the compact Zenfone series and the gamer-focused ROG Phone lineup.

Why It Matters: Asus exits the smartphone market due to rising costs and thin margins, pivoting entirely to AI hardware development.