Updated
Updated · The Verge · Jun 12
Nothing CEO Warns Phone Prices Will Rise Into 2027 as RAM Tops 50% of Costs
Updated
Updated · The Verge · Jun 12

Nothing CEO Warns Phone Prices Will Rise Into 2027 as RAM Tops 50% of Costs

3 articles · Updated · The Verge · Jun 12

Summary

  • Memory now accounts for more than 50% of a smartphone’s hardware bill, and Nothing CEO Carl Pei said that will keep pushing phone prices higher into next year.
  • For Nothing’s Phone 4a, RAM costs doubled between the build decision and launch, then doubled again, showing how the shortage is already hitting mid-range devices.
  • Since February, new phones have launched up to $100 above their predecessors, while phones priced above ₹30,000 in India have risen by ₹7,000 or more, Pei said.
  • Holiday promotions are also likely to weaken because memory is being allocated during the shortage rather than freely bought, limiting manufacturers’ ability to discount.
  • Samsung and Google are also expected to raise handset prices, suggesting the memory crunch is becoming an industry-wide pricing problem.

Insights

With phone prices soaring until at least 2028, has the era of affordable technology officially ended?
Memory makers are in a 'golden era' of profit. Can government action cool down scorching tech prices?
As AI's hunger for memory chips grows, what essential technologies will be starved of supply next?