Holding out for a drop in smartphone prices? The CEO of Nothing has some disappointing news for you.

      Carl Pei is directly involved in the situation, but the RAM shortage he describes is genuine, and the price increases he mentions are already reflected in phones available for purchase today.

      If you've been delaying a new phone in hopes of finding a better deal, particularly on models released earlier this year, Carl Pei, co-founder of Nothing, has a straightforward message: stop holding off.

      In a post on X, Pei elaborated on how 2026 is transforming smartphone pricing like never before. The main factor, unsurprisingly, is a component that now constitutes over 50% of the total hardware cost.

      So why is RAM suddenly escalating phone prices?

      Pei explains that memory, or RAM, has become the priciest hardware component in smartphones.

      A few years back, OLED displays, chipsets, or camera modules vied for the title of the most expensive smartphone component. For budget models, it was the high refresh rate AMOLED display, while flagship devices could have either the chipset or camera module as their costliest component.

      However, by 2026, memory has ascended to that top position. Pei points out that memory is now more costly than both the chipset and the display. The reason, as many of us are aware, is the global surge in AI.

      Data centers constructing AI infrastructure are consuming memory chips at such a rate that it is restricting supply for other customers, including the leading smartphone brands worldwide.

      In his characteristic reflective manner, Pei highlighted his company’s situation as a prime example.

      For the Nothing Phone (4a), the costs for memory doubled during the period from when the device was approved to when it launched, and they have since doubled again. Such price hikes can severely impact finances midway through a product's lifecycle.

      Pei cautions that smartphone prices are likely to keep rising into 2027. “If you’ve been waiting to upgrade, the best time was yesterday,” he stated, emphasizing the daily increase in smartphone prices.

      The surge in RAM prices may not stabilize this year, which is also why the upcoming sale season at year's end may not offer the discounts that have become customary over the years.

      There have been instances of flagship and mid-range phones launching at higher price points, entry-level devices experiencing price hikes of $100 or more, and brands eliminating entry-level models of their smartphones or compact PCs (like the Mac mini), indicating that the pressure on pricing is likely here to stay.