In a stark warning for consumers, Carl Pei, the CEO and co-founder of Nothing, has stated that smartphone prices are set to rise, primarily due to escalating RAM costs. This insight arrives amid a persistent global memory shortage that has begun to affect budgets in the tech industry and consumer purchasing power.
During a recent discussion on social media platform X, Pei elaborated on the repercussions of the RAM shortfall, particularly highlighting its dramatic impact on the pricing strategy for the company’s mid-range Phone 4A. He revealed that memory costs have doubled since the inception of the device's production, raising concerns that the upward trend will continue into 2027. “If you’re contemplating an upgrade, the best time was yesterday,” Pei emphasized, echoing sentiments shared at this year’s Mobile World Congress (MWC).
The ramifications extend beyond Nothing; other prominent smartphone manufacturers, including Samsung and Google, are anticipated to follow suit with price adjustments in light of these increased costs. The surge in RAM expenses has become a focal point of concern, with memory now accounting for over 50% of the total cost in many new smartphone models, surpassing even the price of processors and displays.
As market conditions tighten, consumers may find that the upcoming holiday sales season will not offer the discounts they have come to expect. Pei cautioned, “This year’s sale season won’t have the discounts people are used to.” Recent reports indicate that new phone models have launched at prices up to $100 higher than their predecessors, with significant increases noted in various global markets. In India, for instance, the price of smartphones exceeding ₹30,000 has surged by over ₹7,000 amid the ongoing RAM crunch.
As Pei succinctly put it, “In a shortage, memory is allocated, not bought. You get what you’re given, at the current price.” Therefore, for anyone eager to upgrade their devices, the current climate signals that acting sooner rather than later may be imperative.
For consumers hoping to avoid price hikes in the smartphone sector, the window is narrowing, and the precarious state of RAM supply suggests that waiting may not yield the expected savings.
Source: The Verge
Source: The Verge
