Smartphone distributors in Taiwan have recently said they are no longer able to obtain Asus handsets through local agents and claimed they had received information indicating that Asus's smartphone unit would operate only through December 31, 2025, after which the company would stop launching new smartphone products.
In response, Asus said it has clearly communicated to telecom channels that its smartphone operations will continue and that maintenance, software upgrades, and warranty services for all existing products will not be affected. However, the company said it currently has no plans to introduce new smartphone models in 2026.
Asus added that the smartphone business will maintain its current operating model and continue to provide comprehensive after-sales support for all Asus smartphone users, including warranty coverage and software updates, to ensure user rights and interests are not affected.
Strategic challenges in mobile
Asus established its presence in the mobile device market in the early 2000s. Its ZenFone lineup once gained traction in parts of Southeast Asia by appealing to price-conscious consumers, but intensifying competition from Chinese smartphone brands gradually eroded its market position.
In 2018, Asus undertook a strategic adjustment of its smartphone business and recorded a one-time charge of more than NT$62 billion related to handset operations in the fourth quarter of that year. The charge weighed heavily on full-year earnings, which fell to their lowest level since 2009. Rather than exiting the market, Asus subsequently narrowed its focus to premium ZenFone models and its gaming-oriented ROG Phone series.
PC brands struggle in mobile
The development underscores the challenges PC-centric brands face in an increasingly saturated global smartphone market. Taiwanese PC makers, including Asus and Acer, entered the smartphone sector during its rapid growth phase but struggled to achieve sustainable profitability against larger rivals.
Acer exited the smartphone business in 2016 and returned in 2024 through a brand licensing arrangement with Indkal Technologies. The partnership is limited to the Indian market and focuses on entry-level and mid-range devices.
Article edited by Jerry Chen
