While rising NAND Flash prices and tighter supply were expected to drag down smartphone specs in 2026, a new report says AI demand will actually push average storage capacity higher. Here are the details.
AI needs set to fuel memory push amid tighter low-storage NAND supply
In a report published today, TrendForce says average smartphone storage is projected to grow slightly in 2026, despite rising NAND prices and tighter supply.
That runs counter to earlier expectations that smartphone brands would scale back specs “to protect margins amid rising NAND Flash prices, potentially leading to a decline in average storage capacity in 2026”.
TrendForce says that the average smartphone storage capacity in 2026 will grow by 4.8%, driven in part by the expansion of on-device AI processing:
The market previously expected that smartphone brands would reduce specifications to protect margins amid rising NAND Flash prices, potentially leading to a decline in average storage capacity in 2026. However, high-end brands led by Apple and Huawei are expanding AI capabilities through platforms such as Apple Intelligence 2.0 and Huawei’s new HarmonyOS AI. These edge AI models require 40–60 GB of system storage as cache space for local AI processing.
Last year, Apple discontinued the entry-level 128 GB iPhone, with the release of the iPhone 17 lineup starting at 256 GB, which TrendForce says was “to ensure sufficient capacity for AI applications and user data.” The company did the same when the iPhone 17e replaced the iPhone 16e a few days ago.
That reflects a broader market trend, with brands discontinuing low-capacity models not just due to local AI demands, but also because of “process upgrades at NAND Flash manufacturers,” leading to “a passive increase in smartphone storage capacities across the market.”
Finally, the report outlines how this trend is expected to play out differently for the iPhone versus the broader market:
TrendForce notes that because the iPhone 17 series increased its base configuration to 256 GB, the average storage capacity of iPhones in 2026 will grow significantly faster than that of Android devices. Premium smartphone brands, which are better able to absorb higher memory costs, are increasing storage capacity to support higher device prices and enhance AI experiences.
To read TrendForce’s full report, follow this link.
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