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TrendForce predicts average smartphone NAND capacity to rise 4.8% in 2026 driven by edge AI and low-density supply constraints
Monday, March 23, 2026 at 10:34 PM
According to a TrendForce report, global smartphone storage capacity is expected to grow by 4.8% in 2026 despite rising NAND flash costs. This trend is driven by high-end brands like Apple and Huawei increasing minimum storage to support edge AI processing, which requires 40-60GB of local cache. Additionally, NAND manufacturers are phasing out lower-density memory chips due to process upgrades, making 128GB modules scarce and pushing 256GB toward becoming the new industry standard.
Context
Market intelligence from TrendForce on March 23, 2026, indicates that average smartphone NAND storage capacity is projected to rise 4.8% in 2026, reaching a new standard configuration of 256GB. This growth defies earlier market expectations of a specification downgrade intended to protect margins against soaring memory costs. Instead, the transition is being forced by a supply-side squeeze as NAND manufacturers phase out low-density nodes and a demand-side surge for on-device AI. Apple and Huawei are leading this shift, with the iPhone 17 series reportedly moving to a 256GB base model to accommodate the 40–60 GB of local cache required for Apple Intelligence 2.0.
While premium brands are absorbing these higher costs to maintain AI performance, the mid-to-low-end segment faces a different reality. TrendForce notes that 128GB models are expected to gradually disappear from mainstream Android lineups by the end of 2026. Although exact quotes from the accompanying report require a subscription, TrendForce analysts emphasize that "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."
Sources (11)
Use Apple Intelligence on your iPhone - Apple SupportiPhone 17 - AppleeMMC shortage sends NAND prices soaring, with further gains aheadTight Supply of Low-Capacity NAND Flash and AI Upgrades to Drive 4.8% Growth in Average Smartphone Storage Capacity in 2026, Says TrendForceAI demand and NAND shifts push up smartphone storage in 2026 - TrendForce - TelecompaperiPhone 17 Pro - WikipediaMemory Mania: How a Once-in-Four-Decades Shortage Is Fueling a Memory Boom Report: AI requirements to push higher smartphone storage in 2026 - 9to5Mac
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