While rising NAND Flash and tighter supply were expected to reduce smartphone specifications in 2026, a new report says that demand for AI will actually push average storage capacity higher.
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In a report published today, TrendForce says that average smartphone storage is forecast to increase slightly in 2026, despite rising NAND prices and tighter supply.
This contradicts previous expectations that smartphone brands would reduce specifications “to protect profit margins amid rising NAND Flash prices, which could lead to a decline in average storage capacity in 2026.”
TrendForce reports that the average storage capacity in smartphones will grow by 4.8%, in part due to the expansion of AI processing on the device. Leading 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 temporary storage space for local AI processing.
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Last year, Apple discontinued the base 128GB iPhone model, with the iPhone 17 series starting at 256GB, which TrendForce says was done “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.
This reflects a broader market trend, with brands discontinuing low-capacity models not only due to local AI requirements, but also due to “process upgrades at NAND Flash manufacturers,” leading to “a passive increase in smartphone storage capacities across the market.”
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Finally, the report describes how this trend is expected to evolve differently for the iPhone compared to 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 positioned to absorb the higher memory cost, are increasing storage capacity to support higher device prices and enhance AI experiences.
