Nothing CEO Predicts Continued Rise in Phone Prices

If you’re considering a phone upgrade, the time to act was yesterday, according to Carl Pei, CEO and co-founder of Nothing. He shared insights on social media, highlighting how the ongoing RAM shortage has already affected the pricing of their mid-range devices. For the Phone 4A, Pei noted that memory costs have doubled since the project began and have surged again since its launch. He cautioned that phone prices are on the rise and will continue to climb into next year.

Pei pointed out that RAM now represents over 50% of a new phone’s cost, making it the priciest component, surpassing even the processor and display. Nothing isn’t alone in this predicament; other manufacturers like Samsung and Google are also expected to increase their prices due to escalating memory costs.

If you’re hoping for discounts during sales, you might be disappointed. Pei remarked that this year’s sales won’t feature the typical markdowns consumers have come to expect.

> Memory is now the most expensive component in a smartphone. It’s more expensive than the processor, more expensive than the display, and can account for more than 50% of the total hardware bill.
> For Phone (4a), memory costs doubled between when we decided to build the device and when it launched. They’ve doubled again since.
> I posted about this earlier this year. It’s now playing out, faster than predicted.
> Phone prices are going up, and they’ll keep going up into next year. Since February, new phones have been launching up to $100 more expensive than their predecessors. In India, phones above ₹30K have seen price jumps of ₹7,000 or more.
> The natural instinct is to buy ahead. It doesn’t work that way. In a shortage, memory is allocated, not bought. You get what you’re given, at the current price.
> If you’ve been waiting to upgrade a device, the best time was yesterday. The next best time is now. This year’s sale season won’t have the discounts people are used to.