Tight Supply of Low-Capacity NAND Flash and AI Upgrades to Drive 4.8% Growth in Average Smartphone Storage Capacity in 2026, Says TrendForce

Although global smartphone brands will encounter higher NAND Flash prices in 2026, the average storage capacity for smartphones is projected to grow by 4.8% YoY, according to TrendForce’s recent findings on the memory sector. This growth is fueled by the discontinuation of low-capacity models as NAND producers upgrade their processes, along with increased AI-related demand in flagship smartphones from leading brands.

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. 

As a result, the iPhone 17 series raised its minimum storage configuration from 128 GB to 256 GB to ensure sufficient capacity for AI applications and user data. The Huawei Mate 80 series is also promoting the wider adoption of 512 GB variants to support offline multimodal AI interactions.

Process upgrades at NAND Flash manufacturers are reducing the supply of low-capacity products, making it increasingly difficult for the supply chain to source low-density memory dies. This has led to a passive increase in smartphone storage capacities across the market. 

In addition, some smartphone brands are discontinuing or reducing shipments of low-capacity models with weaker profit margins. Instead, they are focusing resources on mid-to-high capacity configurations such as 128 GB and 256 GB, which is also contributing to the rise in average capacity.

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. 

By contrast, brands targeting the mid- and low-end segments are reducing shipments of higher-cost models and repositioning larger storage capacities as optional upgrades rather than standard configurations.

Looking ahead, as the AI application ecosystem continues to mature, the 128 GB storage tier may gradually disappear from mainstream Android smartphones by the end of 2026, with 256 GB emerging as the new standard configuration.