Memory already represents “more than 50%” of the cost of a smartphone: it is more expensive than the processor and the screen, according to Pei

Memory has become “the most expensive component in a smartphone“, as stated by the executive director of Nothing, Carl Pei, in reference to the crisis that the technology industry is experiencing and which has led to an increase in the prices of devices, which will continue to rise at least until next year.

The impulse of artificial intelligence has made data centers monopolize the production of memories to the detriment of the consumer sector, which sees how this component is not only in short supply but also increases the final prices of the devices.

And the solution is not as easy as buying in advance. “In a shortage, memory is allocated, not purchased. “You get what you get, at the current price,” explains Pei in a statement shared on the social network X (formerly Twitter).

Memory is now the most expensive component in a smartphone. It’s more expensive than the processor, more expensive than the display, and can account for more than 50% of the total hardware bill.

For Phone (4a), memory costs doubled between when we decided to build the device and… https://t.co/4dJdSDwd6T

— Carl Pei (@getpeid) June 12, 2026

The situation has reached a point where memory has become “the most expensive component in a smartphone”, being able to represent “more than 50% of the total hardware cost“, says Pei.

This means that the memory already costs more than the smartphone’s processor and screen. And this has an impact on the final price of the product, which has been rising for months and, according to the manager, will continue to rise until next year.

“Since February, new phones have been released up to $100 more expensive than their predecessors“, he points out. For this reason, Pei assures that the “best time to update a device was yesterday. The next best time is now.”

In January, the manager already warned of the price increase that would be applied to his devices due to the memory crisis that the technology industry is experiencing, but now he assures that “it is developing faster than predicted.”

And he gives as an example the Nothing Phone (4a) smartphone, launched in March. If “memory costs doubled” between the time it was decided to build and its launch, since then “have doubled again,” has apostilled