Nothing CEO warns rising RAM costs will push phone prices higher

Nothing co-founder and CEO Carl Pei warned that smartphone prices are likely to keep rising as RAM becomes more expensive. His comments matter for buyers because Pei also said this year’s sale season may bring smaller discounts than shoppers expect.

In a post on X reported by Android Authority, Pei said the memory shortage has already affected Nothing’s Phone 4A, a lower-cost midrange model. According to Pei, the cost of memory for that device doubled between the point when Nothing committed to building it and the time it launched, then doubled again afterward.

Pei said RAM has become the most expensive part in a smartphone hardware bill. He said memory can cost more than the processor or display and can account for more than 50% of the total hardware cost of a new phone.

Pei’s warning adds to broader concerns about the effect of memory pricing on consumer electronics. The Verge reported that Nothing is the latest phone maker to flag possible price increases tied to higher RAM costs, with Samsung and Google also expected to raise phone prices because of memory expenses.

Pei points to higher launch prices

Pei said in the X post that phone prices are already moving higher and are likely to keep climbing into next year. He said new phones released since February have arrived at prices up to $100 higher than their predecessors.

He also pointed to India, saying phones priced above ₹30,000 have seen increases of ₹7,000 or more. Pei did not frame the issue as limited to one market, describing the RAM shortage as a pressure point for phone makers more broadly.

Pei said manufacturers cannot solve the problem by buying far ahead of demand. In a shortage, he said, memory is allocated to companies rather than freely purchased, and buyers receive supply at the current price.

Holiday discounts may be thinner

For consumers, Pei’s message was direct: waiting for the usual seasonal price cuts may not produce the same savings this year. He said sale-season discounts probably will not match what buyers have grown used to seeing.

Pei also urged people who have delayed a device upgrade to buy sooner rather than later, saying prices are moving against them. His post echoed warnings heard earlier this year during Mobile World Congress, according to The Verge, where phone makers discussed the growing effect of RAM costs on device pricing.

The warning comes as smartphone companies build devices with memory-intensive features and face higher component costs. Pei’s comments suggest those pressures are now reaching retail pricing, with fewer chances for manufacturers to absorb the increases or offset them through holiday promotions.

This story draws on original reporting from The Verge.