Nothing CEO warns of sustained smartphone price rises as RAM costs surge

Nothing CEO Carl Pei has issued a stark warning that smartphone prices will continue to rise into next year, driven by a severe shortage of random-access memory (RAM). Speaking on social media platform X, Pei noted that memory costs now account for more than 50 percent of a new device’s hardware bill, surpassing processors and displays as the most expensive component in the supply chain.

The impact on manufacturing costs has been sharp for Nothing’s own product line. Pei revealed that memory costs for the Phone 4A doubled between the decision to build the device and its launch, and have doubled again since that point. This escalation reflects a broader industry shift where memory is no longer freely bought but is instead allocated during shortages, meaning manufacturers receive what is available at current, inflated prices.

Consequently, Pei advised consumers that the window for securing better deals has likely closed. He stated that this year’s sale season will not feature the discounts shoppers are accustomed to, adding that for those considering an upgrade, “the best time was yesterday.” The natural instinct to buy ahead is ineffective in the current market, as allocation rather than open purchasing dictates availability.

The trend is not isolated to Nothing. Major manufacturers including Samsung and Google are also expected to raise prices on their devices due to these increased component costs. Recent data indicates that new phones have launched up to $100 more expensive than their predecessors since February, with models in India priced above ₹30K seeing jumps of ₹7,000 or more.

While Pei’s warning echoes sentiments previously expressed during the Mobile World Congress, the speed of the cost escalation appears to be outpacing earlier predictions. With memory remaining the most expensive element in smartphone construction, the pressure on consumer prices is expected to persist well into the coming year.