Worldwide end-user spending on generative AI (GenAI) smartphones is forecast to hit $298.2 billion by the end of 2025, according to new estimates from Gartner.
According to Gartner report, worldwide end-user spending on generative AI (GenAI) smartphones is forecast to hit $298.2 billion by the end of 2025. The figure would represent 20% of total global AI end-user spending next year
GenAI smartphones are defined as devices equipped with a neural engine or neural processing unit (NPU) capable of running small language models. The category includes both premium and basic smartphones, though utility devices are excluded as they are not expected to adopt NPU capabilities.
“Currently, most users still rely on text or touch for tasks, and voice interactions remain limited. But as conversational AI becomes more natural, users will view AI less as a tool and more as a proactive companion,” said Ranjit Atwal, Senior Director Analyst at Gartner
The report highlights the growing integration of on-device GenAI models by mobile vendors. Spending on these devices is projected to climb further to $393.3 billion in 2026, up 32% from 2025. Gartner expects that all premium smartphones will incorporate GenAI capabilities by 2029.
Performance gains in NPUs are central to this trend. Gartner forecasts that in 2025, nearly all premium GenAI smartphones will feature NPUs, alongside 41% of basic devices. By 2027, premium smartphones are expected to standardize NPU performance exceeding 40 tera operations per second (TOPS), enabling complex multimodal AI workloads in real time without straining power consumption.
The expansion of GenAI smartphones is expected to accelerate hardware upgrades as users seek devices optimized for AI-driven experiences. Gartner emphasized that the widespread use of NPUs will make GenAI models faster and more efficient, strengthening their role in everyday mobile interactions.