GenAI Smartphones Set to Dominate Global Spending in 2025
Imagine chatting with your phone like it’s a smart buddy, handling tasks without you lifting a finger. That’s the future of generative AI (GenAI) smartphones, and it’s coming faster than you think. A new report from Gartner reveals that global spending on these cutting-edge devices will hit a whopping $298.2 billion by the end of this year. That’s set to make up 20% of all AI end-user spending in 2025, showing just how big GenAI in smartphones is becoming.
So, what exactly are GenAI smartphones? Gartner defines them as phones packed with a built-in neural processing unit (NPU) or neural engine. This tech lets them run small language models right on the device, making everything from voice commands to image editing smoother and smarter. The report focuses on premium models and affordable ones under $350, but skips basic utility phones since they won’t likely get NPU upgrades anytime soon.
Ranjit Atwal, a Senior Director Analyst at Gartner, explains it best: "Right now, most people stick to typing or tapping for everything, and voice chats feel a bit limited. But as conversational AI gets more natural, folks will warm up to AI as a helpful companion that acts on its own, not just something you poke when needed." He adds that new NPUs in smartphones will speed up GenAI models, making them run efficiently. To get the full benefits, users might need to upgrade their phones for that optimized experience.
Looking ahead, mobile brands are racing to add on-device GenAI features. Gartner predicts spending on GenAI smartphones will jump to $393.3 billion in 2026 – a solid 32% increase from 2025. By 2029, every single premium smartphone will come with GenAI capabilities. In fact, nearly all high-end GenAI phones in 2025 will have NPUs, while 41% of budget ones will too.
Performance is key here. Gartner forecasts that by 2027, premium GenAI smartphones will boast NPUs hitting over 40 tera operations per second (TOPS). This power level means they can handle tough, real-time AI tasks – like processing videos or multiple inputs at once – without draining your battery too fast.
As AI evolves, GenAI smartphones could change how we use our devices daily. Keep an eye on this trend; it might be time to think about your next phone upgrade for all that smart tech.
