Samsung does manufacture their own flash memory chips and all, so I expect this is strategic on their part.
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Android strives to be a lightweight OS so it can run on a variety of hardware. The first version of the OS had to squeeze into the T-Mobile G1, with only a measly 256MB of internal storage for Android and all your apps, and ever since then, the idea has been to use as few resources as possible.
Emphasis mine. Now, I know graphics improvements and support for various versions of Android take up a lot of the space used, but gee willikers! It's amazing to think it began with storage requirements far under a single gigabyte.
I am now curious how much of the space can be freed up from removing things (without needing root). I have a Galaxy S20+ and was really thinking of upgrading this year, but until I know how much can be removed normally I will be staying with what I have. I guess the Ultra would at least have a chance at kind of negating the issue space wise. The extra cost is a hard one to justify though, especially since the S23+ in some big ways is like a downgrade compared to what I already have. I still can't believe that my 3 year old phone has more RAM than the new version. And the constant adding and removing micro SD card support is frustrating (even if I don't normally have one installed it is nice to have).
It also sucks that I really like the flat edges of the S23 and S23+ models over the curved non-sense of the Ultra. I have always liked the way the edges of the iPhone 4/4s/5/5s/12/13/14 look compared to the ones with rounded/curved backs (or in Samsung's case the fronts and backs).