If you are thinking of buying a new phone then it may prove costly for you. Carl Pei, co-founder and CEO of Nothing, has warned that smartphones may become more expensive in the coming months due to the severe shortage of memory chips. He says that now memory has become the most expensive hardware part of the smartphone. In India too, there has been a continuous increase in the average prices of mobile phones this year. In such a situation, there is less hope of getting huge discounts like before in the festive season.
Memory chip became the most expensive part
Carl Pei said on the social media platform X that today the memory chip has become the most expensive component of the smartphone. It has now become more expensive than the processor and display and in many devices, more than 50 percent of the total hardware cost is spent on memory alone. He said the cost of memory had doubled between the development and launch of the Nothing Phone 4A, and doubled again after launch. According to Pei, he had warned about this crisis at the beginning of the year and now its impact is becoming increasingly visible in the market.
Most affected on budget phones in India
According to data from market research firm TechArk, the average prices of smartphones in India have increased by 7.9 percent in the first five months of 2026. The biggest impact has been seen on low-cost smartphones. The average price of phones priced below Rs 10,000 recorded an increase of 17.6 percent, while prices in the Rs 10,000 to Rs 20,000 segment increased by 13.9 percent. TechArk co-founder and chief analyst Faisal Kawoosa says that the increase in memory prices has the biggest impact on budget smartphones, because in these devices the cost of memory is a major part of the total price.
Big discount will not be available even in festive sale
Carl Pei believes that the memory chip shortage is different from the normal market situation, because manufacturers cannot buy chips as per their needs, but get limited allocation. This is the reason why cost pressure on smartphone companies is continuously increasing. He said that many new smartphones launched after February have become costlier by about $ 100 compared to their older models. Smartphones priced above Rs 30,000 in India have seen an increase of Rs 7,000 or more in prices. Pei has advised customers not to wait too long if they are thinking of buying a new phone, because this year the chances of getting big discounts in the festive sale like before are very less.
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