Nothing's Carl Pei Warns Phone Prices To Climb Further As Memory Chip Costs Triple
Smartphone prices in India have already jumped ₹7,000+ on sub-₹30K handsets as AI-driven memory shortages push module costs from $20 to $100. Pei flags up to 30% hikes and 20%+ shrinkage in entry and mid-tier segments by end-2026, threatening festive discount cycles.
What happened
Nothing CEO Carl Pei warns smartphone prices in India have already risen ₹7,000+ on sub-₹30K models as AI-driven memory shortages double component costs,
Key facts
- $100 price hike
- ₹7,000+ jump on phones above ₹30K
- memory >50% of hardware bill
- memory cost up 3x
- $20 to $100 per module
- 30% price hike
- 20% segment shrinkage
Why this matters
Tripling memory costs create M&A openings to vertically integrate or lock supply via stakes in DRAM/NAND module assemblers, while distressed sub-scale Android OEMs become consolidation targets.