Smartphones to Launch With More Storage in 2026 Despite Higher Memory Costs: Report

Smartphones are expected to ship with higher storage capacities in 2026 despite rising memory costs. Earlier expectations suggested brands might reduce storage to protect margins, but the trend now appears to be moving in the opposite direction. Supply-side changes and growing demand for on-device AI features are pushing manufacturers to increase base storage across devices. This shift is expected to impact both flagship and mainstream models as companies adjust configurations to meet new usage needs.

AI Features to Push Smartphone Storage Higher in 2026

Average smartphone storage capacity is expected to increase in 2026 despite rising NAND flash prices, according to a report by Trendforce. The firm projects a 4.8 percent year-on-year growth, even as memory, RAM, and other component costs continue to rise. Earlier expectations suggested brands might reduce storage configurations to protect margins, but the trend appears to be moving in the opposite direction.

NAND manufacturers are said to be phasing out low-capacity memory due to process upgrades, which is reducing the availability of lower-density storage. This is pushing smartphone makers to adopt higher base storage options.

The report noted that AI features are a key driver behind this shift, with on-device AI systems requiring around 40GB to 60GB of storage for local processing. As a result, major brands such as Apple, Samsung, and Huawei are increasing base storage capacities, with newer flagship models moving to 256GB or higher, while Huawei is also promoting 512GB variants in its Mate 80 lineup.

Some brands are also reducing shipments of low-capacity models due to weaker margins and are focusing on 128GB and 256GB configurations, while premium brands are absorbing higher memory costs and using larger storage to support AI features and pricing.

The report added that Apple's move to a 256GB base model will drive faster growth in average iPhone storage compared to Android devices. Meanwhile, mid-range and budget brands are likely to keep higher storage variants as optional upgrades.

The report further suggests that 128GB storage may gradually phase out from mainstream Android smartphones by the end of 2026, with 256GB expected to become the new standard.