Smartphones to Get Pricier: Nothing Co-founder Carl Pei Explains Why

• Nothing co-founder Carl Pei predicts smartphones will become significantly more expensive, with 2026 being a "turning point" for consumer electronics.
• The traditional model of component costs decreasing over time has broken due to the massive demand for memory from AI data centers.
• Smartphones are now directly competing with AI infrastructure for essential components, driving memory costs up; some have already tripled.
• Pei warns that memory modules costing under $20 a year ago could exceed $100 for high-end phones by year-end, making it a major cost factor.
• Brands face a choice: raise prices by 30% or more, or downgrade specs, impacting entry-level and mid-range segments significantly.

Why It Matters: Smartphones will become more expensive due to AI's demand for memory, ending the era of cheap components.