Nothing CEO says phone prices will “keep going up” as memory can now account for more than 50% of costs

Nothing CEO Carl Pei warned that smartphone prices will keep rising through 2026 as memory costs now account for more than 50% of hardware expenses, driven by AI demand and supply shortages. Pei revealed memory prices doubled during development of Nothing's Phone (4a) and have since doubled again, making RAM and storage more expensive than processors and displays.

👋 Newsletters Subscribe to our newsletters Sign up for our free, weekly newsletter Subscribe By signing up, you acknowledge our privacy policy and may receive occasional deal communications; you can unsubscribe anytime. Leave this field empty if you're human: PC Guide Search Computing Gaming PC Tablet PC Laptop Desktop Computer Components GPU CPU Motherboard RAM PC Case Cooling Power Supplies PSU HDD SSD Networking & Peripherals Router Modem NAS WiFi Computer Chair Monitor Keyboard Mouse Computer Microphone Headset Computer Desk Webcam Electronics Console Fitness & Tech Raspberry Pi 3D Printer TV Projector VR Smart Home Printer Software Microsoft Office Windows 10 Windows 11 Android iOS Apps Software Downloads Internet Safety Flight Simulator AI Guides How To Compare FAQs Featured Review News Deals Spring Sale Tools Home News Nothing CEO says phone prices will “keep going up” as memory can now account for more than 50% of costs Phone manufacturers are spending more on RAM than displays Abdul Haddi Last Updated on June 15, 2026 PC Guide is reader-supported. When you buy through links on our site, we may earn an affiliate commission. Read More Table of Contents Nothing Phone pricing changed due to memory 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. Sign up for our free, weekly newsletter Subscribe By signing up, you acknowledge our privacy policy and may receive occasional deal communications; you can unsubscribe anytime.Leave this field empty if you’re human: 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. 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… https://t.co/4dJdSDwd6T— Carl Pei @getpeid June 12, 2026 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. 254Would you buy a bare bones Steam Machine?Would you buy a variant of the Steam Machine with no RAM and/or no SSD and install them separately to help save on costs? No, I want the Steam Machine to be complete Yes, I would buy a RAM-less version Yes, I would buy an SSD-less version I'd buy a bare bones version with neither component About the Author Abdul Haddi Abdul is a tech writer and Editor for PC Guide, specializing in all things tech, gaming, and hardware. Load More You can trust PC Guide Our team of experts use a combination of independent consumer research, in-depth testing where appropriate - which will be flagged as such, and market analysis when recommending products, software and services. Find out how we test here. Follow us Table of Contents Nothing Phone pricing changed due to memory costs Related Articles Sihoo Doro C300 Pro V2 Review: C300 to C300 Pro V2, what $100 extra gets you Last Updated May 11, 2026· by Charlie Noon Fanatical’s massive Platinum Collection bundle lets you save 88% on 24 Steam Deck-compatible games Last Updated Jun 15, 2026· by Abdul Haddi OneXPlayer launches X2 Mini Pro OLED handheld for high-end market, starting at more than $2,000 Last Updated Jun 15, 2026· by Abdul Haddi SteamOS support for Intel hardware means you can now install it on an MSI Claw or Arc B580 desktop Last Updated Jun 15, 2026· by Jack Goodall Today’s Wordle answer, hints and clues on June 16 1823 Last Updated Jun 15, 2026· by Jack Goodall About Us Contact Earnings Disclaimer Privacy Policy Sitemap Our Sites: Black Friday TV Deals PC Builder Movies Like Copyright © 2026 PC Guide. All rights reserved. ​