Nothing CEO says phone prices are going to keep going up

2026-06-12 · Source: The Verge · Field: Retail & Consumer Goods — Consumer Products & Manufacturing, Supply Chain & Distribution · Depth: Fundamental Awareness, quick

Summary

Nothing CEO Carl Pei warns that global smartphone prices are set to continue rising into next year, primarily due to an ongoing RAM shortage. Memory now constitutes over 50 percent of a new phone's hardware cost, surpassing processors and displays. This shortage has already significantly impacted Nothing's mid-range Phone 4A, where memory costs doubled between development and launch, and then doubled again. Samsung and Google are also anticipated to increase their phone prices. Pei further noted that new phones have launched up to \$100 more expensive since February, with devices above ₹30K in India seeing price jumps of ₹7,000 or more. Consumers should not expect typical discounts during this year's sale season.

Key takeaway

For consumers considering a smartphone upgrade or waiting for deals, you should anticipate significantly higher prices and reduced discounts. The ongoing RAM shortage means memory is now the most expensive component, driving costs up for all manufacturers, including Nothing, Samsung, and Google. If you need a new phone, purchasing now is advisable to avoid further cost increases, as traditional sale season savings will likely be absent.

Key insights

RAM shortage is driving significant, sustained increases in smartphone prices globally.

Principles

• Memory can exceed 50% of smartphone hardware cost.
• Component shortages dictate allocation, not open market buying.
• Price hikes are global, affecting various market segments.

In practice

• Expect higher prices for new smartphones.
• Do not anticipate deep discounts during sales seasons.
• Consider immediate phone upgrades if needed.

Topics

• Smartphone Pricing
• RAM Shortage
• Component Costs
• Consumer Electronics Market
• Nothing Phone 4A
• Supply Chain Economics

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Editorial summary, takeaway, and curation by AIssential. Original article published by The Verge.