via The Verge
Nothing CEO Says Smartphone Prices Will Keep Rising
Nothing CEO Carl Pei has issued a stark warning to consumers: smartphone prices are not coming down anytime soon. In a statement that resonates as the tech industry heads into 2026, Pei cited the soaring cost of RAM as a primary driver behind sustained price increases across the sector.
## Key Drivers of Price Hikes
According to Pei, the price surge is largely due to soaring memory component costs. RAM prices have been rising, a trend expected to persist into 2026 as demand for higher-memory configurations in flagship and mid-range devices grows. This contrasts with earlier years when memory costs were more predictable.
## Impact on Holiday Discounts
Pei cautioned that the typical holiday discount season may not offer the same bargains consumers have come to expect. With profit margins squeezed by component costs, retailers and manufacturers alike are unlikely to offer deep discounts during the 2025–2026 holiday period. This marks a departure from previous years, when Black Friday and end-of-year sales often saw significant price drops.
## Industry Context for 2026
Pei’s comments come amid broader trends in the semiconductor industry, where memory and logic chip prices continue to climb. As AI integration, higher-resolution displays, and advanced camera systems push hardware requirements, the baseline cost of components like RAM is rising. Analysts predict that 2026 may see an average 10–15% increase in smartphone selling prices compared to 2025.
## Consumer Takeaways
For consumers, the takeaway is clear: if you are considering a new smartphone purchase, waiting for a deep discount may not pay off as it once did. The era of rock-bottom holiday smartphone deals might be on hold, as manufacturers grapple with rising input costs. Buyers may want to lock in prices earlier or consider devices with slightly less RAM to manage expenses.
Nothing’s own upcoming phones, expected to launch in early 2026, will likely reflect these new pricing realities, positioning the brand in a market where value and performance balance becomes ever more critical.