Smartphone prices are expected to rise sharply in the coming months as the cost of memory chips has surged, according to Nothing CEO Carl Pei. In remarks shared on social media platform X, Pei said the sudden spike in memory prices is reshaping the global smartphone industry and forcing manufacturers to reconsider their pricing and product strategies.
Pei explained that memory has now become the most expensive component inside a smartphone, surpassing both processors and display panels in cost. In some cases, he noted, memory can account for more than half of a device’s total hardware expense, marking a significant shift in the cost structure that has remained relatively stable for the past 15 years.
The Nothing CEO warned that the industry now faces a difficult choice: either increase retail prices significantly or reduce specifications to maintain current price points. He suggested that many brands may be compelled to raise prices by 30% or more if they want to preserve performance levels and component quality.
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Highlighting the market impact, Pei said new smartphone models launched since February have already seen price increases of up to $100 compared to their previous versions. He added that in India, phones priced above ₹30,000 have experienced hikes of around ₹7,000 or more, reflecting the growing pressure from rising input costs.
The surge in memory chip prices is being described by industry observers as one of the most disruptive cost shocks in recent years, with potential implications for both premium and mid-range smartphone segments. Manufacturers are now expected to reassess product roadmaps, potentially delaying upgrades or adjusting hardware configurations to balance affordability with performance.
As the situation evolves, consumers may see a gradual shift in smartphone pricing trends, with higher entry costs for new devices and fewer upgrades at the same price points. Industry executives, including Pei, suggest that the coming product cycles will reveal how brands adapt to sustained pressure from the semiconductor supply chain.
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