Nothing CEO Carl Pei announced that smartphone prices will continue to increase and discounts will decrease due to RAM shortages.
In the smartphone world, the process is becoming increasingly difficult for users who plan to buy a new device. Nothing CEO and co-founder Carl Pei stated that the RAM shortage in the industry directly affects device costs and warned that price increases will continue.
In his statement on the social media platform He emphasized that memory costs doubled during the development of the Nothing Phone 4A model and that this increase continued after the launch.
RAM costs dominate smartphone prices
Today, RAM can account for more than 50 percent of a smartphone’s total hardware cost. This makes the memory unit the most important part of the device, leaving behind the cost of other critical components such as the processor and screen.
Not only Nothing, but also leading manufacturers in the industry such as Samsung and Google are expected to increase prices due to similar cost pressures. It is observed that the new models, which have been released since February, are offered for sale at prices up to 100 dollars higher than previous generations.
The fact that there are price increases of 7 thousand rupees and above for phones priced above 30 thousand rupees in the Indian market reveals the seriousness of the situation. Pei notes that during periods of shortage, memory supply occurs through allocation rather than purchase, and manufacturers remain dependent on current market prices.
Discount expectations may not be met
It is said that users’ strategy of waiting for discount cycles may not yield results this year. Carl Pei clearly states that this year’s discount period will not be at the levels that consumers are used to.
Companies are forced to pass the costs directly to the end user due to bottlenecks in memory supply. This shows that smartphone prices will maintain their upward trend throughout the next year.
Pei states that the best time for users who are considering renewing their devices is in the past, and the second best time is today.
How do you think this increasing trend in smartphone prices will change consumers’ device renewal habits?