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 ASUS smartphone 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. The company's "all in AI" strategy encompasses commercial PCs and what they term "physical AI" devices, including robotics and smart glasses.
ASUS's business performance in 2025, with a 26% revenue increase, has been a significant driver of this decision. Their server business and sales team have exceeded expectations, with server revenue growing over 100% year-over-year in Q3 2025, accounting for approximately 20% of total revenue.
The company has been actively building its AI server lineup, leveraging NVIDIA's latest platforms. ASUS 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 current AI server upgrade cycle.
However, this shift comes with challenges. Shih has highlighted supply chain pressures, particularly memory shortages and higher memory pricing, which could impact non-AI products. Taiwanese media reports suggest that ASUS, along with other PC vendors, is considering price adjustments to account for these memory costs.
In fact, ASUS has already announced a price increase for its products, effective early January, in a letter to its partners. The company even requested the removal of this announcement, but we believe it's important to keep our readers informed.
So, what does this mean for the future of ASUS and the tech industry? Are we witnessing the beginning of a new era, where AI takes center stage? And this is the part most people miss... the impact of AI on our daily lives and the potential for innovative products like AI robots and smart glasses.
What are your thoughts on ASUS's bold move? Do you think this is a wise strategic decision, or is it a risky gamble? We'd love to hear your opinions in the comments below!
