In a significant move for the tech industry, Asus chairman Jonney Shih announced the winding down of the company's smartphone business during an event in Taiwan. This announcement was made as part of a 2026 kick-off event, which highlights a shift in Asus's business strategy towards artificial intelligence applications. Struggling to compete in a mature smartphone market, where new innovations have become less frequent, Asus's decision reflects a broader trend among manufacturers who are reevaluating their positions in the highly competitive mobile space. As smartphone upgrades become less frequent among consumers, companies like Asus find themselves unable to sustain profitability in a sector increasingly dominated by larger players like Samsung and Apple. The announcement implies that consumers should not expect new models like the Zenfone or ROG Phone any time soon. Asus had previously aimed to carve out a space in the market with affordable models, yet faced challenges with updates and support compared to industry standards, which compounded their difficulties. Shih's comments suggest a cautious approach going forward, indicating that Asus will only reconsider entering the smartphone market again if significant changes occur within the industry landscape.