Asus Announces End of Smartphone Production After 23 Years
Taiwanese technology giant Asus has made a significant strategic shift by announcing it will cease smartphone production after 23 years in the market. The company confirmed this major decision during its recent 2026 corporate event in Taiwan, marking the end of an era for one of the industry's long-standing players.
CEO Reveals Strategic Reasons Behind the Decision
Asus chairman Jonney Shih personally announced the company's decision to place its smartphone business on indefinite hiatus. During the announcement, Shih stated clearly: "Asus will no longer add new mobile phone models in the future." This declaration effectively ends production of both the Zenfone and ROG Phone product lines, with no new models expected in 2026 or potentially beyond.
While the company hasn't completely ruled out a future return to smartphone manufacturing, Shih described their approach as an "indefinite wait-and-see" strategy. Instead of continuing in the increasingly competitive smartphone arena, Asus plans to redirect its resources and innovation efforts toward artificial intelligence-focused products.
New Focus on Artificial Intelligence Products
The company's strategic pivot involves shifting substantial resources into developing AI-driven technologies. Asus now plans to concentrate on creating innovative products such as advanced robots and smart glasses, moving away from the crowded smartphone market where competition has intensified significantly in recent years.
Despite halting new smartphone production, Asus has committed to continuing maintenance, software updates, and warranty services for existing smartphone customers. This ensures that current Asus phone owners will continue receiving support, though the company has historically faced challenges matching industry leaders in software update frequency and long-term support.
Challenges in the Global Smartphone Market
Asus's Zenfone series smartphones once ranked among global leaders but faced increasing difficulty competing against dominant players like Apple's iPhone, Samsung Galaxy devices, and Google Pixel phones, along with numerous other Android manufacturers. According to industry analysts, a primary challenge was the company's inability to match rivals in providing consistent software updates and comprehensive long-term support.
The ROG Phone range, specifically designed for mobile gaming enthusiasts, developed a dedicated following thanks to its powerful processors, innovative active cooling systems, and specialized gaming accessories. However, its premium pricing—starting at approximately $1,200 for the ROG Phone 9 Pro—limited mass market appeal, with many gamers opting for more mainstream devices from established competitors.
Asus's Position in the Nigerian Market
In Nigeria, Asus smartphones have maintained a niche presence primarily among technology enthusiasts rather than achieving mainstream popularity. Ifeanyi Ebuka, a phone seller at Lagos's Ikeja Computer Village, explained the brand's limited market penetration: "Asus phones, especially the high-end models, are very expensive. The midrange phones are not appealing and do not drive sales, so you hardly see the devices or their accessories in the Nigerian market."
Ebuka added that the last Asus phone he sold was a used Asus ROG Phone 6 (512GB, Black) for N600,000, noting that people mainly purchase these devices for specialized gaming purposes rather than general smartphone use.
Nigerian Smartphone Market Context
The Nigerian Communications Commission (NCC) maintains an official list of approved phones for use in Nigeria, which currently includes 2,303 models from various manufacturers. Recent NCC data reveals that Chinese manufacturer Transsion Group dominates the Nigerian market through its Tecno, Infinix, and Itel brands, which collectively have the largest number of approved phone models in the country.
Nigeria represents one of Africa's largest and most dynamic smartphone markets, characterized by diverse consumer preferences and competitive pricing pressures. The market's evolution continues to shape how international brands approach product development and distribution strategies across the continent.
Asus's decision to exit smartphone manufacturing after 23 years reflects broader industry trends where established companies must continually adapt to changing market dynamics, technological shifts, and evolving consumer demands. The company's pivot toward artificial intelligence and robotics represents a strategic bet on emerging technologies that could define the next generation of consumer electronics.
