Why is ASUS Exiting the Smartphone Market? Check ROG and Zenfones Eligible for the Android 16 Update

ASUS has officially confirmed it is stepping away from smartphones, ending future ASUS phone launches. ASUS chairman Jonney Shih announced that no new ASUS smartphones are planned, speaking at a special gala at the Taipei Nangang Exhibition Center.

The company will not abruptly abandon current users, though. ASUS has stated that existing ASUS phones will keep receiving maintenance, software updates, and warranty support. The move follows earlier reports this month that suggested no new ASUS phones would arrive this year.

ASUS Strategy Shift and New Focus

ASUS is now directing resources and R&D towards commercial PCs and what the company calls physical AI. This includes areas such as robotics and smart glasses, signalling a clear strategic pivot away from the ASUS smartphones business.

Financially, ASUS has reported strong results for 2025. Jonney Shih shared that revenue reached TWD 738.91 billion, around $23.4 billion. That represents a 26% increase compared with 2024 figures, underlining how other divisions now drive growth.

Decline of ASUS Smartphones

The AI server unit stands out within this shift. ASUS reported 100% growth in that segment, saying the AI server business doubled its own target. This rapid rise has helped reduce the company's dependence on ASUS smartphones for revenue.

ASUS had already reduced its phone range in recent years. The Zenfone series shrank, and ROG Phone releases became less frequent. In 2025, ASUS launched only two phones, the ROG Phone 9 FE and the Zenfone 12 Ultra, and reports indicated weak sales.

Android 16 Update

The ASUS ROG Phone 9, Phone 9 FE, and Zenfone 12 Ultra have already received the Android 16 update. On the other hand, the ASUS ROG Phone 8, ROG Phone 8 Pro, and Zenfone 11 Ultra were all promised Android 16 updates. So if you are using one of these phones, you can expect to receive the Android 16 update in time, although the brand is yet to provide clarity on the matter.

The latest decisions therefore continue an existing trend rather than a sudden change. ASUS is consolidating around commercial PCs, AI servers, and physical AI devices, while keeping support commitments for current ASUS smartphones. The original report on this shift appeared in a Chinese-language source.