Smartphone Storage to Rise 4.8% in 2026 Amid AI-Driven Costs

A new industry report indicates that average storage capacity in smartphones will rise by 4.8 percent year-over-year in 2026, even as memory component prices surge due to artificial intelligence demands. This counterintuitive trend, outlined in a March 23 analysis by TrendForce, comes amid record-high costs for DRAM, high-bandwidth memory, and NAND flash, which jumped as much as 80 to 90 percent in the first quarter of the year alone.

The growth stems from two main factors: supply constraints and escalating AI requirements. NAND flash manufacturers are upgrading production processes, which has reduced output of lower-capacity chips like 64GB and 128GB variants. As a result, device makers face challenges sourcing these options for affordable models, prompting them to phase out low-storage configurations altogether. TrendForce analysts noted that this shift will quietly elevate baseline capacities across the market, with some budget brands now prioritizing 128GB or 256GB setups to maintain profitability.

AI integration plays a pivotal role, particularly in premium devices. On-device processing for features like Apple Intelligence and Huawei's HarmonyOS AI demands 40 to 60...