Nothing CEO Carl Pei Warns That Phone Prices Will Keep Rising Amid RAM Cost Crisis
Nothing CEO and co-founder Carl Pei is warning consumers that now may be the time to buy a new phone if they're considering one. In a post on X, Pei shared that rising RAM costs are driving up device prices, and this trend is expected to continue into next year.
According to Pei, the RAM shortage has already had a measurable impact on Nothing's mid-range offerings. For the Nothing Phone 4A, memory costs doubled between when the company decided to build the device and when it actually launched. Those costs have since doubled again, creating what Pei describes as an unsustainable trajectory for the industry.
"RAM can now account for over 50 percent of the cost of a new phone," Pei noted. This puts significant pressure on manufacturers to either absorb the costs or pass them on to consumers through higher retail prices. As a mid-range player in the market, Nothing is particularly vulnerable to these cost fluctuations since value-oriented devices operate on thinner margins.
Pei's warning echoes sentiments expressed at MWC, where industry executives broadly acknowledged that component shortages—particularly memory—would likely keep smartphone prices elevated throughout 2024 and beyond. The Nothing Phone 4A Pro, the company's latest mid-range attempt, is already feeling the effects of these market pressures.
For consumers, the message is straightforward: if you're in the market for a new phone, particularly in the mid-range segment, now may be more attractive than later as prices continue their upward trajectory.