Gartner forecasts a significant upswing in the smartphone market, driven by generative AI’s integration into new devices. The consultancy predicts that phones equipped with neural processing units (NPUs) will ship 369 million units in 2025, amounting to a substantial $298 billion in revenue. This enthusiasm hinges on the belief that consumers will be eager to carry AI capabilities in their pockets.

According to Gartner’s senior director Ranjit Atwal, the shift from touch and text interactions to more conversational AI is anticipated to enhance user comfort with smartphones as proactive digital companions. However, this leap toward AI-driven devices lacks immediate practicality for basic models, which won’t gain NPU support for large language models soon.

Premium GenAI smartphones, set to dominate in 2025, are expected to enable faster and more efficient AI processes thanks to NPUs. While 41% of basic models may also incorporate these advances, the necessity for upgraded hardware could prompt a significant upgrade cycle.

Despite optimistic projections, a major challenge remains: reversing recent stagnations in smartphone sales, witnessed after a brief period of growth in 2024. While Gartner shows optimism for AI smartphones, the PCs’ sector remains tentative with higher costs and unclear applications dissuading buyers.

With users holding onto devices longer and the second-hand market thriving, Gartner’s Atwal suggests smartphones, mature in their NPU integration since 2019, are better poised to capitalize on AI stature than PCs that lack such groundwork. Whether this enthusiasm translates into actual sales remains to be seen.