Smartphone prices to rise as AI drives component demand: Nothing's Pei
Get ready—smartphone prices are set to climb starting in 2026, according to Nothing's co-founder Carl Pei.
The main reason? AI data centers are snapping up memory components, which means fewer affordable parts for phone makers.
In the past, cheaper memory helped brands pack in more features without raising costs, but now the competition is heating up.
Why this matters for your next phone
Pei points out that memory prices have already tripled in some cases and could push high-end phone memory above $100—a big deal for manufacturers.
This puts brands in a tough spot: either bump up prices or cut back on features, especially for budget and mid-range phones.
Pei thinks this shift might actually push companies to focus more on design and user experience instead of just specs—but either way, expect new phones to get pricier soon.