Nothing CEO Carl Pei Announces Imminent Smartphone Price Increases Amid Global RAM Shortage
In a recent announcement, Carl Pei, CEO and founder of Nothing, has confirmed that the company will be raising the prices of its smartphones in 2026. This decision is driven by a significant surge in memory component costs, particularly RAM, which has been exacerbated by the escalating demand from artificial intelligence (AI) data centers.
Pei detailed the challenges in a blog post titled Why Your Next Smartphone Will Cost More, where he explained that the same DRAM and NAND flash memory used in smartphones are now in high demand by AI infrastructure. Tech giants like OpenAI and Google are securing silicon wafer capacities years in advance, leading to a direct competition between smartphone manufacturers and AI firms for these critical components. This competition has resulted in memory costs tripling in some instances. For example, memory modules that were priced under $20 a year ago are projected to exceed $100 by the end of 2026 for flagship devices. ([timesofindia.indiatimes.com](https://timesofindia.indiatimes.com/technology/tech-news/nothing-ceo-carl-pei-warns-customers-buying-smartphones-in-2026-pay-30-more-or/amp_articleshow/126526864.cms?utm_source=openai))
The escalating costs present smartphone manufacturers with two primary options:
1. Increase Prices: To maintain current hardware specifications, companies may need to raise smartphone prices by 30% or more. ([notebookcheck.net](https://www.notebookcheck.net/Smartphones-expected-to-become-even-worse-or-30-more-expensive-Nothing-CEO-Carl-Pei-warns-of-the-consequences-of-the-DRAM-crisis.1204372.0.html?utm_source=openai))
2. Reduce Specifications: Alternatively, to keep prices stable, manufacturers might opt to downgrade hardware components, potentially compromising device performance.
Pei emphasized that the era of offering enhanced specifications at lower prices is coming to an end. He noted that brands that have built their reputation on delivering high specs for less money will face significant challenges under these new market conditions. ([timesofindia.indiatimes.com](https://timesofindia.indiatimes.com/technology/tech-news/nothing-ceo-carl-pei-warns-customers-buying-smartphones-in-2026-pay-30-more-or/amp_articleshow/126526864.cms?utm_source=openai))
In response to these challenges, Nothing plans to upgrade its upcoming smartphones to UFS 3.1 storage speeds, starting with devices launching in the first quarter of 2026, such as the anticipated Phone (4a) series. This upgrade aims to provide faster processing speeds and an enhanced user experience, albeit at a higher price point. ([gadgets.beebom.com](https://gadgets.beebom.com/news/nothing-phones-will-become-more-expensive-in-2026-confirms-carl-pei?utm_source=openai))
The global RAM shortage is not only affecting Nothing but is also impacting other tech companies. For instance, DIY PC manufacturer Framework has announced significant price increases for its desktop systems due to the continued surge in LPDDR5x RAM costs from suppliers. The company has raised prices by up to $460, particularly affecting configurations with 128GB of RAM. ([tomsguide.com](https://www.tomsguide.com/computing/desktop-computers/this-is-going-to-be-a-challenging-year-framework-just-raised-the-price-of-its-desktops-by-up-to-usd460-due-to-ram-crisis-and-it-will-go-higher?utm_source=openai))
Similarly, the Nothing Phone (3a) Lite has experienced a price increase in India, with the base 8GB + 128GB variant now priced at Rs 21,999, up from its previous price. This adjustment reflects the broader industry trend of rising component costs. ([gadgets.beebom.com](https://gadgets.beebom.com/news/nothing-phone-3a-lite-price-quietly-increases-in-india?utm_source=openai))
Industry analysts predict that the memory supply crisis may persist until 2028, potentially leading to further price increases and supply chain challenges. As a result, consumers may face higher prices or reduced specifications in their devices. Pei’s transparency in addressing these issues highlights the broader challenges facing the tech industry as it navigates the complexities of supply chain disruptions and evolving market demands.
