TAIPEI (Taiwan News) – Asustek Computer Inc. said it had no plans to launch new phone models this year, reports said Friday.

The statement followed comments by distributors that the company was completely withdrawing from the smartphone business, reported Liberty Times. Asustek launched the Asus phone brand in 2003, gaining a high level of popularity, especially in Southeast Asia.

However, strong competition from new Chinese brands affected its business, with the company’s phone division registering losses totaling NT$12.07 billion (US$384.52 million) in 2018. Asus focused on its high-end Zenfone and the ROG Phone, designed for gamers.

Reacting to the latest reports that the company was considering abandoning the phone sector, Asus said that for the time being, it had no plans to launch any new smartphones this year. Operations, product maintenance, upgrades, and warranties would continue as usual, the company said.

The phone division will continue to operate and provide after-sales services to Asus users, according to Asustek. Software updates for the phones would also continue as planned.

The phone brand faced tough competition at both ends of the market, with Apple and Samsung squeezing sales of its more expensive models, while Chinese rivals were homing in on its mid- and low-price phones, per CNA. As a result, Asustek was concentrating on the sale of AI servers and its PC business.