Global spending on GenAI smartphones set to soar to $298.2 bn this year

The total spending on GenAI smartphones globally will account for 20 per cent of total AI end-user spending in 2025, a report said on Tuesday. According to Gartner, the global end-user spending on generative AI (GenAI) smartphones is expected to reach $298.2 billion by the end of this year.

For the study, Gartner defined 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 smartphones (under $350) but excludes utility smartphones as they are not expected to have NPU capabilities in future.

"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.

“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 optimized experiences,” Atwal added. With all mobile vendors increasingly integrating on-device GenAI models and applications, end-user spending on GenAI smartphones is expected to total $393.3 billion in 2026, an increase of 32 per cent from 2025.