Artificial intelligence and RAM issues may increase the cost of your next phone by 30%
The expected tech crisis of the year has been on everyone's mind for weeks: a lack of RAM will cause a huge spike in mobile phone pricing, affecting practically all gadgets. However, warning bells are ringing most loudly in the smartphone sector. Some manufacturers, like the well-known Chinese business Xiaomi, are already suffering the consequences of the crisis, with new phone costs increasing by 100 to 200 yuan, or around $10 to $25.
So it's no surprise when Carl Pei, CEO of Nothing, confirmed unequivocally what we all expected: no brand is immune to the consequences of the RAM problem.
Nothing has received extensive notice since its inception in 2021 due to its independent approach—being headquartered in Europe, namely London, rather than Asia or America—and its persistent devotion to exceptional design and a distinct user experience.
Although its proportion of the global smartphone market is less than 1%, it is regarded as one of the fastest-growing brands in terms of percentage growth, particularly in emerging nations such as India. Furthermore, its CEO has a respected reputation in the industry, which gives his statements significant weight.
Pai made it quite obvious: "2026 will be an exceptional year for consumer electronics, and the smartphone industry in particular." The CEO of Nothing stated that "for the past fifteen years, the smartphone industry has been built on one reliable premise: that component costs would inevitably decrease," which "allowed for annual increases in specifications without price increases." However, this advantage will end this year "due to a sharp and unprecedented rise in memory costs."
As we discussed previously, the RAM scarcity, like so many other challenges these days, is tied to artificial intelligence. Training and operating AI models need enormous data centers that rely on this sort of component. Manufacturers—the same ones who supply computers, mobile phones, tablets, and even game consoles—have begun to shift a portion of their output to this more profitable business.
The immediate outcome is a drop in consumer goods availability and an increase in costs across all product categories. The president and CEO of Nothing states, "In some cases, the cost of memory has tripled, and further increases are expected as unprecedented demand continues to outstrip available supply."
In terms of digital technology, "memory modules that cost less than $20 a year ago are expected to exceed $100 by the end of the year for high-end models."
According to Carl Pei, this growth will compel businesses to make a difficult choice: raise costs "by 30% or more in some cases" or cut specifications, because "the 'more specs for less' model is no longer sustainable in 2026."
Despite admitting that their items would become more costly, the executive remained positive about the company: "For nothing, the current circumstance provides a tremendous opportunity. Operating without the cost benefits that the industry's heavyweights enjoy has driven us to develop in new ways. We realized early on that we couldn't achieve success by depending just on technical requirements; instead, we worked on improving the user experience, demonstrating that the phone's appearance and feel are far more essential than its technical characteristics."