Danny Weber
Nothing’s CEO says memory and storage have become a major cost driver, forcing phone makers to rethink prices and discounts.
Nothing co-founder and CEO Carl Pei has explained why smartphones are becoming noticeably more expensive again. According to him, RAM and storage are now among the costliest parts of modern devices, and in some cases they cost manufacturers more than mobile processors and displays.
Pei pointed to the Nothing Phone (4a) as an example: the cost of memory for this model had already doubled between the start of development and the official launch. After the phone reached the market, prices rose again, forcing the company to reassess the economics of the device and its future pricing strategy.
According to the head of Nothing, RAM and storage can now account for more than half of a smartphone’s total component cost. The problem is that memory manufacturers are already operating close to their limits, while brands receive restricted supply volumes and have to compete for available batches.
Amid the shortage, many new smartphones introduced since the start of the year are already about $100 more expensive than their predecessors. Pei believes that if the situation does not change, buyers should expect not only further price increases but also less generous discounts during major sales events.
Industry analysts link the situation to a sharp rise in demand for DRAM from the artificial intelligence market. In 2026, these chips became significantly more expensive, which could raise smartphone production costs by 10–30% depending on the model. Budget and mid-range devices are being hit especially hard, although the premium segment is also feeling the impact.
Nothing itself is already warning that it may have to revisit pricing for future smartphones, including the Phone (4a) line. The issue clearly goes beyond one brand: other major manufacturers, including Samsung, Xiaomi, Google and the rest of the market, are facing the same rise in memory costs.
Carl Pei advises against waiting too long before buying a new smartphone: if the memory shortage continues, upcoming models could become even more expensive, while the familiar seasonal discounts may become noticeably smaller.
© A. Krivonosov