Mumbai, January 18: Asus has officially clarified its smartphone strategy for 2026, confirming that the company will not be expanding its current mobile product lines or introducing new categories to its phone portfolio. Speaking at the company’s year-end employee gathering at the Taipei Nangang Exhibition Centre, Chairman Jonney Shih stated that the Taiwanese tech giant intends to pause aggressive growth in the smartphone sector. This announcement follows weeks of industry speculation regarding the future of the brand’s mobile division.

The decision marks a significant strategic pivot for Asus, which has traditionally maintained a presence in the niche gaming and enthusiast smartphone markets with its ROG Phone and Zenfone series. While no new models or categories will be added, the company emphasized that this is not a total exit from the market. Instead, Asus is shifting its primary focus toward high-growth sectors, specifically artificial intelligence (AI) and robotics. ASUS ROG Phone 10 Launch Cancelled, ASUS Rethinks Gaming Smartphone Strategy.

Support for Existing Users and Market Realities

Despite the halt on expansion, Chairman Shih reassured existing customers that after-sales services and technical support will remain fully operational. Asus plans to honour its commitments to current users, ensuring that software updates and hardware repairs continue as planned. The move appears to be a response to an increasingly saturated and margin-driven global smartphone market, where scaling volumes has become difficult for smaller players.

Asus Smartphone Strategy Update 2026

By choosing not to introduce additional product lines, Asus is effectively streamlining its operations. The company’s leadership noted that the competitive landscape of the mobile industry has shifted significantly, making it more practical to maintain a stable user base rather than investing heavily in the research and development of new smartphone form factors or mid-range categories.

Strategic Shift to AI-Driven Hardware

With smartphone expansion off the table, Asus is redirecting its capital and engineering resources toward AI-driven hardware and physical AI products. The company plans to ramp up investment in intelligent machines, edge computing, and robotics that can operate with minimal human intervention. This shift aligns with the broader industry trend of integrating advanced AI software directly into specialised hardware systems. ASUS Teases AI-Powered Laptop Launch in India Soon With Focus on Performance, Design and Innovation.

Asus AI Robotics and Servers Investment

Asus believes its long-term growth will be driven by enterprise-grade systems, including AI servers and integrated platforms. Chairman Shih highlighted that the future lies in building "physical AI" products that solve complex industrial and consumer problems. While smartphones will continue to exist within the Asus ecosystem, they are no longer viewed as the primary engine for the company’s financial growth as it pivots toward an AI-first future.

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(The above story first appeared on LatestLY on Jan 18, 2026 10:35 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).