New Delhi : Global end-user spending on generative AI (GenAI) smartphones is projected to reach $298.2 billion by the end of 2025, accounting for 20 per cent of total AI end-user spending, according to a Gartner report released on Tuesday.
Gartner defines GenAI smartphones as devices equipped with a built-in neural engine or neural processing unit (NPU) capable of running small language models. The forecast covers both premium smartphones and basic devices priced under $350 but excludes utility smartphones, which are not expected to feature NPU capabilities in the near future.
“Currently, most users still rely on text or touch for all tasks, and voice interactions remain limited,” said Ranjit Atwal, Senior Director Analyst at Gartner. “However, as conversational AI becomes more natural, users will increasingly view AI as a proactive digital companion rather than just a reactive tool.”
Atwal added that the widespread adoption of NPUs in smartphones will allow GenAI models to run faster and more efficiently, prompting users to upgrade to the latest hardware for optimized AI experiences.
With major smartphone vendors integrating on-device GenAI models and applications, end-user spending on GenAI smartphones is expected to reach $393.3 billion in 2026, reflecting a 32 per cent increase from 2025. Gartner forecasts that by 2029, 100 per cent of premium smartphones will feature GenAI capabilities, while in 2025, nearly all premium GenAI smartphones will include NPUs, and 41 per cent of basic GenAI devices will feature them.
By 2027, on-device NPUs capable of performing over 40 tera operations per second (TOPS) will become standard in premium GenAI smartphones, enabling real-time execution of complex multimodal AI workloads without excessive power consumption.
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