Carl Pei, the CEO of Nothing, has issued a stark warning about impending increases in smartphone prices. He pointed to the production expenses associated with the Nothing Phone (4a), revealing that the cost of memory components surged, having doubled between the decision to launch the device and its eventual release. This figure then escalated again, doubling within a mere three months after the phone hit the market. Pei remarked, "If you’ve been considering upgrading your device, the optimal time was yesterday. The next best time is now." While Pei's comments are among the more striking in the tech sector, independent analysts have echoed similar sentiments. A report from Counterpoint Research in March 2026 projected that memory could represent 36–43% of the total manufacturing cost of smartphones by the end of that quarter. The memory shortage is largely attributed to an escalating demand from AI data centers. Major players in the industry, including Samsung Electronics, SK Hynix, and Micron Technology, dominate the DRAM market, holding approximately 90% of it, and about 65% of the NAND flash market. These companies are increasingly prioritizing production for the more lucrative memory used in AI servers, resulting in a diminished supply for smartphones and personal computers. TrendForce has indicated that by the close of Q2 2026, standard DRAM prices may surge by 58–63% compared to March levels, while NAND flash prices could experience an increase of 70–75%. Are you considering upgrading your smartphone?
Informational material. 18+.