Nothing CEO Warns Phone Prices Will Keep Rising as Memory Costs Surge

Nothing CEO Carl Pei warns that smartphone prices will keep rising because memory costs are climbing. Memory has become the most expensive component in a phone, surpassing the processor and display. It can now account for more than 50% of the total hardware bill.

Memory now the most expensive smartphone component

Pei made the remarks while discussing the economics behind Nothing's upcoming Phone (4a) series. The company develops both the Phone (4a) and Phone (4a) Pro models. Rising memory costs directly affect the pricing of these devices.

Memory prices doubled during the Phone (4a) development cycle and doubled again after launch. The surge is driven by competing demand from AI applications, which also require large amounts of memory. This puts additional pressure on smartphone makers.

Consumers should not expect deep discounts in upcoming sales events, according to Pei. The sustained high cost of memory means promotional pricing will be limited. Buyers may need to adjust their expectations for near-term deals.