Core Viewpoint - ASUS has announced that it will suspend the launch of new smartphones, including the Zenfone and ROG Phone series, in 2026, marking a significant shift in the smartphone market and signaling the end of an era for small-sized flagship devices [1][3][15]. Company Overview - ASUS has historically focused on unique innovations rather than following mainstream trends, exemplified by products like the Padfone and ZenFone Zoom, which showcased its commitment to creativity [5][8]. - The Zenfone series targeted small-sized smartphone enthusiasts, with models like ZenFone 8, 9, and 10 receiving positive reviews for their compact design and flagship specifications [10][14]. - The ROG Phone series was designed specifically for gamers, featuring unique functionalities such as side charging ports and AirTriggers, catering to a niche market [11][13]. Market Challenges - The smartphone industry is facing rising costs, with a projected 25% increase in material costs by 2026 due to supply chain dependencies, which disproportionately affects smaller brands like ASUS [16][18]. - The competitive landscape is dominated by giants like Apple and Samsung at the high end, and Chinese brands like Xiaomi and OPPO at the mid to low end, leaving ASUS in a challenging position [19][22]. - ASUS's smartphone business has been a financial burden, with significant losses reported in previous years, and its market share in Taiwan dwindling to approximately 1.2% by 2025 [23][25]. Industry Implications - The exit of ASUS from the smartphone market reflects a broader trend where unique, niche products struggle to survive in an increasingly saturated and mature market [26][28]. - The success in the smartphone industry now hinges on supply chain management, cost control, and extensive distribution channels, rather than solely on product uniqueness [28].