Global end-user spending on generative AI (GenAI) smartphones is expected to reach $298.2 billion by the end of 2025, according to Gartner, Inc.
This spending will account for 20% of all AI end-user spending in 2025.
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Global Spending on GenAI Smartphones to Hit $298.2 Billion by 2025: Gartner
Gartner defines GenAI smartphones as devices with built-in neural engines or neural processing units (NPUs) that can run small language models.
The forecast covers both premium smartphones and basic models priced under $350, but excludes utility smartphones, which are not expected to include NPUs.
Ranjit Atwal, Senior Director Analyst at Gartner, said, “Currently, most users still rely on text or touch for everyday tasks, with voice interactions remaining limited in scope. However, as conversational AI becomes more natural, users are expected to increasingly view AI as a proactive digital companion rather than just a reactive tool.”
With smartphone makers quickly adopting on-device GenAI models and apps, end-user spending is projected to grow to $393.3 billion in 2026, which is a 32% increase from 2025.
Gartner Forecasts 100% Adoption of GenAI in Premium Smartphones by 2029
Gartner predicts that by 2029, all premium smartphones will include GenAI capabilities.
Atwal added, “The broad adoption of NPUs in smartphones will enable GenAI models to run faster and more efficiently, encouraging users to upgrade to the latest hardware for optimized experiences.”
Gartner also forecasts that by 2025, almost all premium GenAI smartphones will have NPUs, and 41% of basic GenAI smartphones will also feature them.
By 2027, on-device NPUs capable of exceeding 40 tera operations per second (TOPS) are expected to become standard in premium GenAI smartphones.
These NPUs will allow complex multimodal AI workloads to be executed in real-time without consuming excessive power.
