Carl Pei, CEO of Nothing, has confirmed that smartphone prices will increase in 2026 due to the ongoing RAM shortage crisis. According to reports from NDTV Profit, Pei stated during a YouTube channel conversation that "Much like many other brands, we'll have to announce price increases across our smartphone portfolio as well." The Nothing CEO emphasized that the RAM shortage will serve as a major blow for companies looking to deliver value by lowering manufacturing costs, as RAM prices have shot up 3-4 times making it impossible to create value for money.
Pei described the current RAM shortage as unprecedented, stating he has "never seen anything like it in like 20 years in the industry." As reported by NDTV Profit, the RAM prices have increased 3x due to sudden surge in AI-led demand, which has acted as a bottleneck for the global supply of RAMs. The CEO noted that "You can't even predict what it's going to be next month or next week," highlighting the unpredictable nature of the current market conditions. Recent developments show that Samsung has already raised memory chip prices to 60% from September to November 2025 for some products, according to Reuters, demonstrating the immediate impact of the crisis.
According to Pei's analysis reported by NDTV Profit, companies face two primary options in response to the RAM crisis. The first option involves increasing product prices to maintain profitability and company operations, while the second involves reducing product specifications to compensate for the higher RAM costs. Pei explained that "So companies, they have two choices or two options of what to do. Either you just increase the price of the product because you still have to, you know, run a company, and try and be profitable, or you keep the price, but you reduce what's inside because the RAM has taken up a larger percentage-wise of the overall cost."
The RAM shortage crisis is affecting the entire consumer electronics industry, not just smartphones. As reported by BGR, Samsung's head of global marketing warned at CES 2026 that price increases would be expected across the industry, with the impact likely to show in higher retail prices for smart TVs, phones, and computers. Major manufacturers including Samsung Electronics, Micron, and SK Hynix account for over 90% of global chip production, and it's likely that orders from AI companies will be prioritized over consumer device manufacturers going forward. Micron has even confirmed its plans to pull out of its Crucial consumer business entirely, highlighting the fundamental shift in market priorities.
