Will global end-user spending on GenAI smartphones hit $298.2 billion by the end of 2025?
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Synopsis
Are you ready for the future of smartphones? A new report suggests that global spending on GenAI smartphones could reach a staggering $298.2 billion by 2025. Discover how this technology is set to revolutionize user experiences and reshape the market landscape.
Key Takeaways
- Global spending on GenAI smartphones is forecasted to reach $298.2 billion by 2025.
- GenAI smartphones integrate NPUs for enhanced performance.
- Users are anticipated to upgrade to the latest hardware for optimal experiences.
- 32 percent increase in spending is projected from 2025 to 2026.
- Real-time execution of AI tasks without excessive power consumption is expected.
New Delhi, Sep 9 (NationPress) A recent report reveals that global expenditures on GenAI smartphones are projected to represent 20 percent of total AI end-user spending in 2025. As per Gartner's insights, the worldwide end-user investment in generative AI (GenAI) smartphones is anticipated to reach $298.2 billion by the conclusion of this year.
In their analysis, Gartner categorizes GenAI smartphones as devices featuring an integrated neural engine or neural processing unit (NPU) capable of executing small language models.
This forecast encompasses both premium smartphones and entry-level models (priced below $350), while excluding utility smartphones that are not expected to possess NPU functionalities in the foreseeable future.
"Presently, the majority of users depend on text or touch for their interactions, with voice commands remaining largely underutilized. However, as conversational AI evolves to become more intuitive, users are likely to embrace AI as a proactive digital assistant rather than merely a reactive tool," commented Ranjit Atwal, Senior Director Analyst at Gartner.
“The widespread adoption of new NPUs in smartphones will facilitate faster and more efficient execution of GenAI models, prompting users to upgrade to the latest hardware for enhanced experiences,” Atwal further stated.
As mobile manufacturers increasingly incorporate on-device GenAI models and applications, end-user spending on GenAI smartphones is projected to rise to $393.3 billion in 2026, marking a 32 percent increase from 2025.
The research firm predicts that 100 percent of premium smartphones will be equipped with GenAI capabilities by 2029. By 2025, nearly all premium GenAI smartphones are expected to integrate NPUs, with approximately 41 percent of basic GenAI smartphones featuring similar technology.
According to Gartner, by 2027, on-device NPUs are expected to achieve performance levels exceeding 40 tera operations per second (TOPS), setting a new standard for premium GenAI smartphones.
This level of performance will enable real-time execution of complex multimodal AI tasks without excessive energy consumption, as noted in the report.
Point of View
I believe that the rapid evolution of GenAI smartphones marks a pivotal moment in technology. The integration of advanced AI capabilities into everyday devices not only enhances user experience but also sets a new standard for innovation in the tech industry. At NationPress, we remain committed to delivering insights that matter to our audience, ensuring they are well-informed about these transformative developments.
NationPress
09/09/2025
Frequently Asked Questions
What are GenAI smartphones?
GenAI smartphones are devices that come equipped with a built-in neural engine or neural processing unit (NPU), allowing them to run small language models and perform advanced AI tasks.
How much is global spending on GenAI smartphones expected to reach by 2025?
Global end-user spending on GenAI smartphones is projected to reach $298.2 billion by the end of 2025.
Will all premium smartphones feature GenAI capabilities by 2029?
Yes, Gartner predicts that 100 percent of premium smartphones will incorporate GenAI capabilities by 2029.
What is the role of NPUs in GenAI smartphones?
NPUs, or neural processing units, enhance the efficiency and speed of GenAI models, enabling smartphones to execute complex tasks in real-time.
What is the expected spending increase for GenAI smartphones from 2025 to 2026?
End-user spending on GenAI smartphones is expected to grow by 32 percent, reaching $393.3 billion in 2026.
