Asus Is Discontinuing Its Budget Android Smartphones For The Worst Reason

There are two main camps in the smartphone industry: iPhone and Android. While only Apple makes iPhones, many brands make phones based on the Google-owned Android OS. The best-known brands in this space include Samsung, Motorola, and Google, as well as popular Chinese brands such as OnePlus, Xiaomi, and Huawei. Asus is a Taiwanese company known for its computers and other related products that make Android phones. But now, Asus is shifting its focus to AI and has confirmed that it will no longer make Android smartphones.

What's most puzzling about the decision is the reason behind it. Instead of continuing to make smartphone hardware, Asus is putting those eggs into its AI development basket. There's no denying the AI trend, and major companies, particularly PC companies, are looking for ways to stand out and showcase their latest AI innovations. But less competition in the smartphone hardware market could give the leading brands an edge, driving phone prices even higher. Asus joining other companies that have recently exited the phone industry, including LG and Nokia (Nokia-branded phones are still being made by owner HMD Global), leaves consumers with far fewer choices.

Jonney Shih, Chairman of Asus, said at the company's year-end gala in 2025 that Asus would "No longer add new mobile phone models in the future." He did, however, indicate that those who currently own Asus phones will be taken care of through software updates and warranty support, at least for the time being. Instead, resources will be redirected to support trending products like AI robots and glasses.

Asus made phones under the Zenfone brand, such as the Zenfone 12 Ultra, which boasts a Qualcomm processor and plenty of AI features, including integrated Google Gemini. While they're usually less expensive, there have even been Zenfones that compete with iPhone models. Notably for gamers, Asus also makes ROG phones, such as the positively-reviewed ROG Phone 6 Pro. They offer features like advanced cooling, fast response time, side triggers, and more that are perfectly suited to those who love to play on the go or handheld. While Shih hinted this decision could be a pause and not a permanent halt in production, we can be certain there won't be a new Zenphone or ROG phone model in 2026.

The smartphone market is dominated by only a handful of brands. Apple remains on top for shipment market share, followed by Samsung, Motorola, HMD, Google, and Xiaomi. There are other major smartphone brands in other parts of the world as well. But only these six main competitors in North America don't give consumers much choice. Every brand has many phone model options, usually with a "good, better, best" portfolio. But fewer brands competing could mean higher prices and less differentiation in terms of design, experience, and software options beyond Android.

It's especially bad news for serious mobile gamers, who represent a niche audience for ROG phones. The only other major competitor is RedMagic, which is releasing its new RedMagic 11 Air globally in late January 2026. Asus' exit leaves it as one of the few, if not the only, major dedicated gaming phone manufacturers left. The news suggests that the domination of only a few brands in the smartphone space will continue, not only because consumers are choosing them, but also because there isn't much choice outside of them anymore.