Another Phone Brand That’s Been a Staple for Vietnamese Users Over the Past Decade Bids Farewell: Nostalgic Farewell to Iconic Models

ASUS Halts Smartphone Production

Following a series of high-profile brands discontinuing their smartphone lines, ASUS has announced a pause in the production of new smartphones in 2026. This decision has sent shockwaves through the market, including Vietnam, where the brand has a significant following.

Specifically, this move affects ASUS’s entire mobile product lineup, including the Zenfone series, currently at its 12th generation (launched in late 2025). Plans for the Zenfone 13 have been scrapped from the 2026 product roadmap.

The ROG Phone series, the world’s leading gaming smartphone, known for its powerful hardware, will also not see a successor to the ROG Phone 10 this year.

However, ASUS’s decision differs from other brands in that it has announced a “pause” rather than a complete “cessation.” Regardless, this move represents a rare “hibernation” in the fast-paced mobile industry, where product lifecycles are measured in months.

Market reactions have been mixed. In ASUS’s home country, distributors express concerns about competing with Chinese and Korean brands. Meanwhile, international and Vietnamese users express nostalgia and skepticism about the brand’s potential return.

Why is ASUS Saying Goodbye?

ASUS’s decision to halt smartphone production stems from multiple factors.

The primary technical reason is the soaring cost of materials, particularly RAM and storage, which has made production increasingly unfeasible.

Unlike Apple or Samsung, which optimize profits with mid-range RAM configurations (8GB-12GB), ASUS’s strategy, especially for the ROG Phone, relies on high-end specifications.

To maintain its reputation, a 2025-2026 ROG Phone would require at least 16GB of RAM, with premium models offering up to 24GB or 32GB of LPDDR5X/6 RAM.

As global DRAM prices rise, the production cost of a ROG Phone increases exponentially compared to competitors. For instance, a 30% increase in RAM prices could add $50-$70 to the cost of a ROG Phone (with 24GB RAM), while an iPhone (with 8GB RAM) would see an increase of less than $20.

ASUS lacks the ability to produce its own memory chips like Samsung or SK Hynix and cannot negotiate better prices due to smaller order volumes compared to Apple. This forces ASUS to purchase components at market rates, eroding its already thin profit margins.

Additionally, the 2026 smartphone market is no longer the “blue ocean” it was in 2014. The rise of Chinese gaming phone brands like RedMagic (Nubia) and Black Shark (Xiaomi), offering similar specs at two-thirds the price, has squeezed ASUS’s market share.

In the premium segment, the compact Zenfone struggles to compete with the brand power of the iPhone and the versatility of the Galaxy S Ultra. Declining interest in smaller screens, as seen with the iPhone Mini’s failure, has further limited Zenfone’s strategy.

A Familiar Name in Vietnam

Before 2014, Vietnam’s smartphone market was deeply polarized. High-end devices like the iPhone and Samsung Galaxy S were prohibitively expensive, while budget options offered poor quality.

In 2014, ASUS launched the Zenfone 4, 5, and 6, immediately gaining traction for their balance of performance and affordability.

The Zenfone 4, priced at around $85, was highly sought after in Vietnam. Despite its weak 1200mAh battery (prompting ASUS to include an extra battery), its Intel Atom dual-core processor offered superior performance for its price.

The Zenfone 5, priced at around $170, introduced Vietnamese users to 2GB of RAM, a 5-inch HD IPS display, and a premium metal-like design. This model redefined mid-range standards, forcing Samsung to phase out low-spec models like the Galaxy Y and Galaxy Trend in favor of the Galaxy J series.

After years of failing to establish a unique identity and financial setbacks in 2018, ASUS realized it couldn’t compete on price with Xiaomi or OPPO. Instead, it shifted focus to the ROG Phone, aligning with the growing esports trend in Vietnam.

With its rugged design, RGB lighting, and accessory ecosystem (controllers, cooling fans), the ROG Phone became a dream device for Vietnamese gamers. Despite its high price ($650-$975), it maintained steady sales in its niche market.

The regular Zenfone line (Zenfone 8, 9, 10) shifted to a compact premium design. However, in Vietnam, where users prefer larger screens for entertainment, this strategy did not yield significant sales success.

ASUS’s exit evokes memories of other lamented departures, leaving open the possibility of a return, as its mobile division is not a core revenue driver.

According to ASUS’s 2024 and 2025 financial reports, the company’s revenue structure shows significant disparities.

The PC & Laptop segment accounts for over 60% of total revenue, making it ASUS’s primary income source. The components & server segment is also growing rapidly (over 50%) due to AI demand. In contrast, the mobile segment contributes less than 1% of total revenue.

ASUS is not abandoning mobile technology but is shifting focus to AI PCs (Copilot+ PCs), integrating NPUs and AI into laptops, where it leads the market.

This decision leaves a significant gap in the Vietnamese market. Users will lose access to top-tier gaming smartphones, replaced by Chinese laptops with higher warranty risks.

In the face of rising component costs and the AI revolution, stepping back from the competitive smartphone market to focus on core strengths seems a strategic move for ASUS.