Nothing CEO Carl Pei warns that smartphone prices will climb in 2026. The culprit is a sharp spike in memory costs, as DRAM and NAND flash prices surge. Pei notes that the long-held assumption that components get cheaper over time is no longer valid.

This shift stems from intense competition between smartphone makers and AI data centers for the same memory supply. With global memory prices jumping as much as 500%, manufacturers face a ballooning bill of materials. Components that cost under $20 last year could top $100 soon.

Pei confirmed Nothing’s devices will see price increases, partly due to a move to faster UFS 3.1 storage. Samsung is also reportedly considering hikes for the Galaxy S26 series. For consumers, this marks a reversal from years of falling prices and thinner margins for budget brands.