A report by TrendForce has stated that AI demand will increase significantly in 2026, despite rising NAND Flash prices and tighter supply. The report suggests that high-end brands like Apple and Huawei are expanding AI capabilities through platforms like Apple Intelligence 2.0 and Huawei’s new HarmonyOS AI. This shift runs counter to expectations that smartphone brands would reduce specs to protect margins amid rising Nand Flash prices, potentially leading to a decline in average storage capacity. The average smartphone storage capacity for 2026 will grow by 4.8%, driven in part by the expansion of on-device AI processing.