ASUS CONFIRMS EXIT FROM SMARTPHONE MARKET

Asus has officially confirmed it will stop producing new Android smartphones, marking the end of a long but commercially challenging chapter for the Taiwanese hardware maker.

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Chairman Jonney Shih described the decision as a “paradigm shift,” pointing to rising costs, shrinking margins, and the accelerating influence of artificial intelligence on consumer hardware strategy.

The announcement formalizes what industry observers had suspected for months as Asus scaled back mobile development and reduced product refresh cycles. While the company did not specify an exact cutoff date for existing models, it made clear that no new smartphones are in active development, effectively closing the door on future Zenfone or ROG Phone launches.

RAZOR-THIN MARGINS AND AI COST PRESSURES

Asus’ withdrawal highlights the increasingly unforgiving economics of the smartphone industry. Even at global scale, profit margins for Android phone makers have narrowed sharply, especially outside the top tier dominated by Apple and Samsung. For mid-volume manufacturers like Asus, the cost equation has become increasingly difficult to justify.

Industry analysts point to the rapid rise in prices for AI-capable system-on-chips, advanced memory, and imaging components as a central factor. Modern smartphones now require powerful neural processing, larger RAM pools, and more sophisticated thermal designs to remain competitive, driving up bill-of-materials costs while retail prices remain constrained by intense competition.

These pressures have already forced other once-prominent brands to retreat. LG exited the smartphone business in 2021, while HTC steadily reduced its mobile ambitions after failing to keep pace with larger rivals. Asus now joins that list, reinforcing how difficult it has become for smaller players to survive in the smartphone arena.