Samsung Now Has One Less Competitor as ASUS Exits Smartphone Market

ASUS has officially announced that it won’t introduce new smartphones. This comes after years of the company trying to gain a foothold in a crowded smartphone market. As such, Samsung and other brands now see one less rival, mainly in the high-end smartphone segment.

ASUS ends smartphone business to focus on PCs and AI devices

In recent years, ASUS launched its Zenfone Ultra models to compete with top smartphone brands. For example, the company launched the Zenfone 11 Ultra (2024) and the Zenfone 12 Ultra (2025). These models feature large screens with high-performance hardware to challenge models like Samsung’s Galaxy S25 Ultra. ASUS also received praise for its gaming phones in the ROG Phone series. However, the current ROG Phone 9 Pro did not see a successor in 2025.

If you’re hoping to see next-gen Asus phones, there’s some bad news. In a statement at an end-of-year gala in Taipei on January 16, ASUS chairman Jonney Shih said, “ASUS will no longer add new mobile phone models in the future.” The executive also assured the company will continue to take care of the existing mobile phone users. ASUS aims to shift its R&D resources (originally invested in mobile phones) to commercial PCs and Physical AI devices, including AI robots and AI glasses. The company sees these devices as future growth opportunities.

From a business view, ASUS’s exit is understandable. The leading smartphone makers are prioritizing cameras, software, and ecosystem integration. Of course, ASUS phones offer solid performance and impressive designs, but they may not have attracted most buyers. If the company continues to invest in smartphones, it may not secure large profits or may face losses.

ASUS’s exit could be good news for Samsung’s smartphone business. For example, the upcoming Galaxy S26 Ultra will now face less competition in the premium Android segment, as ASUS won’t release the Zenfone 13 Ultra for the same buyers.