Nothing's CEO predicts smartphone prices will rise even further, citing soaring memory costs accounting for more than half of the price in some models.

The demand for AI is driving up the prices of memory and processors. Carl Pei, CEO of smartphone manufacturer Nothing, predicts that 'memory will become more expensive than processors and displays, and the price of smartphones will continue to rise,' and he also shared his thoughts on the best time to buy a smartphone.

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

Best Time to Buy New Phone? Yesterday, Says Nothing CEO
https://uk.pcmag.com/mobile-phones/165572/nothing-ceo-best-time-to-buy-new-phone-was-yesterday-amid-memory-shortage

CEO Pei pointed out, 'Memory is now the most expensive component in a smartphone. It's more expensive than the processor or display, and can account for more than 50% of the total hardware cost.' Regarding their own smartphone, the ' Phone (4a), ' he said that the cost of memory doubled from the time they decided to manufacture it until it was released, and has doubled again now, three months after its announcement.

For these reasons, CEO Pay predicts that smartphone prices will continue to rise beyond 2027. 'If you were hesitating about upgrading, yesterday was the perfect time. The next best time is now,' he continued, adding that prices will only continue to rise if you wait.

At the beginning of 2026, CEO Pay stated, 'This year will be an unprecedented year for the smartphone industry. The annual practice of increasing specs without raising prices will collapse, and the 'more specs for less' model will no longer be sustainable in 2026. As a result, certain markets, particularly the entry-level and mid-range segments, are likely to shrink further, putting brands that have dominated these markets in a difficult position.' This latest statement reinforces that previous view.

https://t.co/ynfCSXu0Yh

— Carl Pei (@getpeid) January 14, 2026

The memory shortage is a concern for many companies, with some estimates suggesting that existing production plans will only meet 60% of global demand until 2027. The chairman of South Korean semiconductor manufacturer SK Hynix predicted that the memory shortage is likely to continue for four to five years, while Samsung stated that the memory shortage will continue into 2027, and the supply-demand gap in 2027 is expected to widen even further compared to 2026.

Samsung predicts memory shortages will worsen further in 2027, and customers have already started placing orders for 2027 - GIGAZINE