Nothing CEO says phone prices will “keep going up” as memory can now account for more than 50% of costs
If you’ve been thinking about upgrading your smartphone, you may want to do so sooner rather than later. According to Nothing CEO (and OnePlus co-founder) Carl Pei, phone prices are expected to keep increasing throughout the rest of 2026 and could continue climbing into next year as manufacturers struggle with rising memory costs.
The warning comes as the global memory shortage continues to impact the technology industry. While processors and displays have traditionally been among the most expensive parts inside a smartphone, that is no longer the case. Memory has now become one of the biggest cost factors for phone makers, forcing many companies to adjust their pricing strategies.
Nothing Phone pricing changed due to memory costs
Pei recently revealed that the cost of memory for Nothing’s Phone (4a) changed dramatically during development. According to him, memory prices doubled between the time the company began working on the device and its launch. Since then, those costs have reportedly doubled again, creating even more pressure on manufacturers.
Even Samsung’s upcoming Galaxy A27 (a much more budget-oriented phone) is also said to be more expensive than the A26 that came before it. Nothing released its (4a) and (4a) Pro phones in March this year – its next release isn’t expected to be a phone at all, but rather, the Nothing Ear (3a) earbuds.
The main issue is that RAM and storage components are becoming increasingly expensive due to limited supply and growing demand. The rapid expansion of AI technologies has created massive demand for memory chips, with data centers and AI hardware manufacturers competing for the same supply used by smartphone companies.
As a result, RAM and storage can now account for more than half of a smartphone’s hardware cost. In some cases, memory is reportedly more expensive than the processor and display combined, which is a major shift compared to previous years.
The situation has become difficult for phone makers because they are no longer able to simply order as many memory chips as they need. Supply is often allocated through quotas, and manufacturers must pay whatever the current market price happens to be.
Consumers have already started seeing the effects. Several smartphones launched in recent months have arrived with higher price tags than their predecessors. In many cases, new models cost around $100 more than the devices they replace.
The shortage could also affect upcoming sales events. According to Pei, customers should not expect the same level of discounts that have been common in previous years. With manufacturers paying significantly more for components, there is less room for aggressive promotions and price cuts.
