A global shortage and a sharp rise in memory chip prices are forcing manufacturers to revise their pricing policies. The founder and CEO of Nothing, Carl Pei, stated this directly in a post on the X platform, warning that the situation in the components market could lead to a noticeable increase in retail smartphone prices as early as 2026.

What is happening with memory

Over the past year, the cost of key components, namely DRAM and NAND flash memory, has increased several times. Pei pointed out that memory modules which not long ago cost manufacturers less than 20 dollars could exceed 100 dollars in top configurations by the end of 2026.

He explained that the main reason for the crisis was the explosive demand from the AI industry. Major model developers such as Google, OpenAI, and Meta were purchasing enormous volumes of high-speed HBM memory and server-grade SSDs. As a result, leading suppliers like Samsung, SK hynix, and Micron were reallocating their production capacity toward the enterprise segment.

Manufacturers’ dilemma: price or specifications

According to Pei, companies are now facing a difficult choice. They can raise final prices for consumers, reduce the amount of memory in devices, for example using 8 GB instead of 12–16 GB in base models, or look for compromises in other components.

He emphasized that Nothing intends to maintain audience loyalty even under these conditions. In his view, the current situation is an opportunity to prove that a brand’s value is defined not only by hardware specifications, but also by the overall user experience, design, and product philosophy.

He also reminded that Nothing smartphones released in 2025 generally received positive feedback, despite some controversial decisions, including a short-lived experiment with advertising on the lock screen.

The end of the “specs race”

Pei suggested that 2026 could become a turning point for the entire industry. He expressed the idea that the market might gradually move away from the endless “specs race,” in which manufacturers had been competing primarily in memory size, performance, and energy efficiency.

Instead, the focus could shift toward software, design, ecosystems, and real user experience, aspects that are harder to copy and harder to measure with simple numbers.

In brief

Carl Pei of Nothing warned that because of rising memory prices, which could exceed 100 dollars per module in top configurations, smartphones in 2026 would either become more expensive or lose some of their specifications. The company aims to retain loyalty through user experience and design rather than purely technical figures. He sees the current crisis as a chance for the industry to move away from the specs race toward more thoughtful and meaningful product development.