Nothing CEO warns smartphone prices will surge in 2026 as AI devours memory supply

Nothing will raise smartphone prices in 2026 due to RAM shortages, Carl Pei confirms

2026 is looking like a tough year to be in the market for consumer electronics, as the race to dominate AI continues to devour more and more RAM. Unsurprisingly, Nothing isn't immune to these current market conditions, and it's bound to mean more expensive smartphones come later this year. Carl Pei, CEO and founder of Nothing, published a blog post to Twitter late on Tuesday. The post, titled "Why Your Next Smartphone Will Cost More," breaks down the current frustrations being faced by the tech industry, as AI "fundamentally reshape[s] demand" for memory. While most of the observations shared here are universal -- it's not just Nothing that appears to face a choice between raising prices or downgrading specs -- the real news comes towards the end of the post, when Pei confirms that Nothing's smartphone portfolio will "inevitably" see a price increase. It might not all be bad news for Nothing fans. Pei confirms an upcoming launch will see "some products" -- presumably Nothing's A-series -- move to UFS 3.1 storage, though that also ties into these upcoming higher prices. There aren't any exact figures here, though Pei does use seemingly-hypothetical guesses like "30% or more" when discussing unspecified smartphone brands. Earlier in the piece, Pei also points to estimates that "memory modules which cost less than $20 a year ago could exceed $100 by year-end for top-tier models." Again, not really suggesting minor $5 or $10 price bumps here. Still, Pei seems largely reassured by his own brand, calling the situation "a great opportunity" to prove to consumers that Nothing wins on more than "spec sheets alone." Although the Nothing experience has hit some pretty big speed bumps in the past few months, it's easy to see where this sense of optimism comes from. The company released some pretty solid products in 2025, even if each of them seemed to arrive with their own individual controversies. But Pei's big swing sets 2026 as "the year the 'specs race' ends," and I admittedly have a difficult time seeing that come to fruition. People are still looking for increasing amounts of power out of their smartphones, as we've seen with various Pixel 10-adjacent controversies over the past six months or so. Nothing's overall experience on Android is pretty solid, give or take a short-lived lockscreen ads experiment, but whether that's enough to see enthusiasts and other Android users give up on their race for the most portable powerhouse in their pocket remains to be seen.

Nothing CEO explains how and why you'll pay more for your phones this year

Smartphone price hikes have been widely predicted for months, but 2026 is now shaping up to be the year those warnings turn into reality. Analysts, leaks, and supply chain reports have all been pointing out how this year will be uniquely bold and worrisome for phone buyers. Now, Nothing CEO Carl Pei has laid out why smartphone prices are rising and why there may be no easy way around it. In a long post on X, Pei said the smartphone industry is facing a shift it has not seen in more than a decade, and it all comes down to memory. "For fifteen years, the smartphone industry relied on a single, reliable assumption: components would inevitably get cheaper," he wrote. That assumption, according to Pei, has finally collapsed due to a sharp and unprecedented rise in memory costs. Why memory is suddenly the biggest problem Pei explains that AI has completely reshaped demand for memory chips. The same memory used in smartphones is now critical for AI data centers, and hyperscalers are locking in silicon wafer capacity years in advance. "For the first time, smartphones are competing directly with AI infrastructure," he said, and RAM prices are climbing fast as a result. In some cases, Pei claims memory costs have already risen by up to three times, with more increases expected. He points out that memory modules that cost less than $20 a year ago could $100 by the end of 2026 for top-tier phones. That shift forces phone makers into an uncomfortable choice: either raise prices by 30% or more, or downgrade specs. Recommended Videos We are already seeing signs of this across the industry, from reports warning that your next Galaxy smartphone could cost more, to analysis showing how rising memory costs could directly impact your next smartphone purchase from any other brand. This is not just a smartphone problem. Any product that relies heavily on memory is affected. Laptops and PCs are already seeing price pressure, with reports showing RAM and storage prices climbing fast, and brands like Dell and Lenovo signaling upcoming price hikes, while Asus has also joined the growing list of PC makers raising prices. Even memory suppliers are sounding the alarm, with Micron confirming that the memory shortage and pricing pressure are here to stay. Due to AI race, the era of cheap phones may be ending, with entry-level and mid-range segments likely to shrink as costs climb. Pei agrees, saying brands that built their reputation on offering more specs for less money will struggle. Nothing itself plans to raise prices across its lineup, especially as it upgrades products launching this quarter to UFS 3.1 storage. Still, Pei sees an opportunity. He argues that 2026 marks the end of the specs race and the start of something else. With raw hardware no longer cheap, user experience, design, and how a phone feels to use will matter more than ever. In his words, the era of cheap silicon is over, and intentional design is just beginning.