Global spending on GenAI smartphones to hit USD $298.2 billion
Global end-user spending on generative AI smartphones is projected to reach USD $298.2 billion by the end of 2025, according to research from Gartner.
The figures indicate that this spending will constitute 20% of the total AI end-user spending for that year. This projection is based on Gartner's definition of generative AI (GenAI) smartphones: devices equipped with neural engines or neural processing units (NPUs) capable of running small language models. Both premium and basic smartphones, defined as those priced under USD $350, are included in this analysis, while utility smartphones are excluded due to their lack of NPU capabilities.
Gartner's estimates show a significant increase in end-user expenditure as more mobile vendors integrate on-device GenAI models and applications. In 2026, global end-user spending on GenAI smartphones is expected to grow to USD $393.3 billion, reflecting a 32% rise from the 2025 figure.
The latest research also forecasts that all premium smartphones will feature GenAI capabilities by 2029. This anticipated growth in GenAI smartphone adoption is linked to improvements in both hardware and the naturalness of AI-driven user interactions.
Changing interaction methods
According to Ranjit Atwal, Senior Director Analyst at Gartner, user behaviour is expected to shift as GenAI capabilities are enhanced and become more integrated into devices.
"Currently, most users still rely on text or touch for all tasks, and voice interactions remain limited in scope. However, as conversational AI becomes more natural in the future, users are expected to become more comfortable with AI as a proactive digital companion, rather than just a reactive tool," said Ranjit Atwal, Senior Director Analyst at Gartner.
This evolution in device interaction is likely to drive hardware upgrades, as the new generation of NPUs will be required to optimise the GenAI experience.
Sales and technology outlook
Gartner's analysis provides detailed data on the expected growth in global sales and spending for GenAI smartphones. The projections highlight that the number of GenAI smartphone units shipped worldwide is expected to increase from an estimated 260.4 million in 2024 to 369.3 million in 2025, before reaching 559 million units in 2026.
In terms of spending, the figures move from USD $244.7 billion in 2024 to USD $298.2 billion in 2025, then to USD $393.3 billion in 2026. This growth underscores the impact of the adoption of GenAI models and the corresponding need for enhanced hardware.
Ranjit Atwal commented further on the implications of NPU proliferation and its influence on user expectations and device capabilities:
"The broad use of new NPUs in smartphones will allow GenAI models to run faster and more efficiently, requiring users to upgrade to the latest smartphone hardware for optimised experiences," said Atwal. "In 2025, Gartner forecasts almost all premium GenAI smartphones will include NPUs and 41% of basic GenAI smartphones will have NPUs."
Performance forecasts
Gartner's projections for hardware improvements extend into the coming years, with expectations for NPUs to achieve further performance enhancements. By 2027, Gartner anticipates that on-device NPU performance exceeding 40 tera operations per second (TOPS) will become standard in premium GenAI smartphones.
Such performance gains are expected to support real-time execution of complex, multimodal AI workloads while managing devices' power demands efficiently.
Gartner's forecast for GenAI smartphones reflects changes in consumer technology demand, vendor strategies, and the shift toward more powerful, AI-driven devices. The shift towards on-device GenAI rather than cloud-based intelligence is also driven by advances in neural processing and efficiency, contributing to widespread market adoption.
The research from Gartner provides a data-driven perspective on the trajectory of GenAI smartphone technologies and their increasing role in the broader AI ecosystem.
