Nothing’s CEO explains why your next phone is going to be more expensive

At this point I don’t think it will catch you by surprise, but if so, to summarize: we are living a DRAM memory crisis unprecedented and that, together with the active war conflicts and the situation with AI and data centersare factors that are turning the smartphone industry into a really complicated scenario. The most expensive component of a mobile. Carl Pei, co-founder and CEO of Nothing, has been warning about this for months, and his latest words summarize very well how the situation currently stands. And just as affirms In one of his latest tweets, “memory is now the most expensive component of a smartphone. More than the processor, more than the screen, and can represent more than 50% of the total hardware cost.” pei ya I had anticipated this situation Last January, a few months after we began to see how some manufacturers were modifying the prices of their memory offering, rising up to 300% in some segments. Data center hunger. The large data centers of Microsoft, Amazon, Google and Meta need the same type of memory that phones have (DRAM and NAND Flash) to power their artificial intelligence models. The difference is that hyperscalers (basically Big Tech) pay more, they buy more and reserve production capacity years in advance. According to IDCthe three largest memory manufacturers in the world (Samsung, SK Hynix and Micron) have redirected their production capacity towards the high-performance memory (HBM) demanded by Nvidia GPUs, leaving less supply available for mobile phones. And as the technology analysis firm points out, each wafer destined for an HBM stack for an AI chip is a wafer that will not go to an LPDDR5X module for a mid-range smartphone. By the end of 2025, SK Hynix was already directing 30% of its wafers to HBM; Micron went further and last December said goodbye to Cruciala brand aimed at the final consumer, redirecting all its production to the business market. What the numbers say. The shortage has a direct reflection on prices. Gartner calculate that the combined cost of DRAM and SSD will rise by 130% before the end of 2026, making smartphones 13% more expensive on average compared to 2025. TrendForce situates Global phone production around 1,135 million units this year, a 10% drop compared to 2025. IDC comes to estimate a decline of almost 13% in global smartphone shipments, which would be the largest in more than a decade. And if that were not enough, the average price of a smartphone has already reached $550 in 2026, a hundred dollars more than the previous year, according to share from Memeburn. Who pays the price? Omdia esteem that phones under $100 will drop 31% in sales this year. The entry and mid-range segments, where brands such as Xiaomi, Oppo and others usually operate, they are the hardest hitbecause their margins are very narrow and they cannot absorb cost increases without passing them on to the consumer. Nabila Popal, research director at IDC, claimed that “the era of the ultra-cheap smartphone is over.” The Nothing case as a thermometer. Pei illustrates it with your own product. The memory costs of the Nothing Phone (4a) doubled between the time the company decided to manufacture it and the day it went on sale. And they have doubled again since then. In the life cycle of a single product, the cost of memory has multiplied by four, and it is an example that more brands are living in silence. What changes for the buyer. Pei warns that this year’s sales season, like Black Friday, will not have the discounts to which the consumer was accustomed. Since February, new phones have been on the market with prices up to $100 more expensive than their predecessors. In fact, according to Pei, in India, models above 30,000 rupees (about 272 euros at the exchange rate) have risen more than 7,000 rupees compared to the previous generation. And the forecast is that prices will continue to rise, at least until 2027. For Nothing, it is an opportunity. Pei has been defending for years that design and user experience matter more than specifications on paper, and now the market is proving them right the hard way. “2026 is the year the spec race ends,” he said in January. It is a delicate topic, because if we think about it coldly, we get less for the same price or more than what we already paid, so it can be very easily interpreted as a way of making the user not take into account the technical specifications sheet and let themselves be carried away by what the brand puts in front of their eyes. And now what. The relief in prices will not come until manufacturers have greater production capacity, something that analysts They don’t wait before 2028. Until then, we have two options: either buy now, before prices rise further, or hold on with the device we have. And it seems that update cycles are going to lengthen, and in that context, the second-hand and reconditioned market may gain appeal. In Xataka | The great novelty of Siri is to use the iPhone without touching it. I’ve been doing the same thing on my Android for months.

Nothing’s CEO wants to conquer the mobile market with crazy designs. He has told us his very complex plan to achieve it

Carl Pei is one of the CEO that gives off the most in the technology industry. You saw a cowboy and basic shirt, they warn me that it is shy and, after a few minutes of interview, we end up smiling, commenting that “the vibes” are the future, and remembering the old days of Cyanogenmod out of formalities. Those who have been in El Cotarro to know Carl from that Old OnePlus who only sold his phones by invitation. With Nothing, the approach is different. A London company with the focus on design and with a clear slogan: “Make Tech Fun Again”. Looking up Nothing began with a Phone (1) that attacked the mid -range. He continued with a Phone (2) that took a specifications and, in 2025, attacks the market with a mobile of 799 euros with a high range. I can’t help wanting to know why. Carl explains that for Nothing, both the Phone (1) like him Phone (2) They were flagships. It sounds like a statement Marketinianbut it is not: “For a company, a flagship is the best mobile you can do.” For the first time, they believe they are at an engineering point in which they can compete with the best in the market, a point where they are finally ready. Sailing a high range is risky, and throwing it being oriented to a concrete niche, it is even more. Nothing is not in volume, it is not desperate to launch product and points directly to “the most creative users.” All this sounds very good, but it is worth asking if A company can be profitable and sustainable living as “creative users”. “We are focused on new generations of consumption. We focus on people who are interested in technology, design and creativity. Our consumer is much younger than the average consumer, it is around 26 years.” Does the strategy work? Yes. Carl tells me that they have folded the volume of business, exceeding one billion dollars in the accumulated sales. He knows that they have been focusing on software for years, but they intend to double software investment to be even more attractive. They also have an important investment behind, in which investors take a direct role in the decisions made by the company. “Sometimes it is uncomfortable, because they give their opinion in front of the rest of the members of our table. But I think it is really important to find ways to keep us connected with this base, especially when the company grows. It is difficult to hear uncomfortable truths when you have that type of structure, we always know what people want us.” The present Carl Pei during the presentation of Nothing Phone (3) and the Nothing Earphone (1). Image | Xataka With Nothing Phone (3) comes the whopping seven years of security updates and five software. Maybe it’s time for Get out of stopping a mobile per year if mobiles are getting older and more. Or maybe not. “On average, people renew phone every three years. So there will always be someone thinking about the following. But we are also seeing a trend of people who want to keep their device for a longer time. That is why we want to give even longer support.” The phone also lands with an integration of quite discreet. Essential Search Essential Space Minor translation functions Is enough to compete, taking into account that There are already those who integrate the AI Even in the most basic apps of the system (telephone, keyboard, camera …)? Carl is clear that Nothing’s approach is cautious, because they see “a lot of hype” in the market. It drops that, even if they have launched these functions, “the Roadmap is long, there will be updates and updates.” But, beyond promising that in the future AI will be more complete, it is not afraid to admit that it agrees. “This is almost like a hygiene factor, right? We have to take care of that basic part, but that is not what excites us most. What really excites us is how we apply this new technology to redefine the way people use products, especially in the software part. But yes, that basic work is necessary. You have to do it. The market is doing it and I think we can do much more.” Image | Xataka To close the block, I ask Carl for something practically inevitable: How are geopolitical tensions between the United States and China livingand if your supply chain is being affected. The Nothing Phone box (3) shows a clear “Made in China”, so there is nothing to hide. Here he tells us that most of their products are manufactured in India, and some of them in China. Apart from this, he affirms that they are in the process to start producing in other parts of the world. It does not seem too worried, and the reason is simple. “Being a startup, we can be quite agile and reagents, whatever happens.” The future of smartphone Nothing Phone (3). Image | Xataka A question that I like to ask the main responsible for Tech companies is how they look in the future. And being, honest, the answers are usually little concrete. It is something completely normal: neither should get wet with compromised statements or, really, it is easy to predict with where today’s technology is going. But Carl is a Jugónand it is clear that the future of the smartphone goes through a single app capable of controlling everything. That agriculture that we have spent so much speaking throughout 2025. The key is that, When everything is … what will be the reason to decide between one device or another? It clarifies that it is still distant, and that no one would buy a phone without apps today. The key will be on the path that is to achieve it, a path to combine and melt all software and hardware. “I think Essential Search is a good example. … Read more

Nothing’s last launch is gorgeous and, now, you can take it with headphones for less than you think

If you are looking for a mobile with a different design from the rest, those of the Nothing brand stand out in front of the other terminals in the market. Now, at Amazon, you can get a pack composed of the Nothing Phone (3A) with Nothing Ear headphones (A) on offer. Specifically, it is available for 373 euros. Nothing Phone (3rd) 128 GB + Nothing Ear (A) * Some price may have changed from the last review A perfect pack for those looking to change mobile He Nothing Phone (3A) It is a terminal with 6.77 inches AMOLED screen and offers FullHD+ resolution (of 2,392 x 1,080 pixels). It offers an adaptive refreshment of 120 Hz and reaches a peak brightness of up to 3,000 Nits. The brain of this mobile is the processor Qualcomm Snapdragon 7s Gen3 and comes with a storage capacity of 128 GB. Your photographic system is made up of a Triple 50+50+8 mp rear camera and a 32 MP striker. Works under the nothing os 3.1 operating system (based on Android 15) and its battery admits fast charging of 50 W. It is a dual sim and comes with the iconic LED system (called Glyph Interface), which characterizes the firm. Regarding pack headphones, Nothing Ear (a) They stand out for their light weight of only 4.8 grams each. Although they also attract attention by Integrate Chatgpt. They have three -level adaptive noise cancellation and their battery lasts up to 40 hours. The best accessories to protect this mobile Boerhang compatible with Nothing Phone 3A * Some price may have changed from the last review Yenwen Screen protector for Nothing Phone 3A, 2 pieces tempered glass with 2 pieces chamber lens * Some price may have changed from the last review Some of the links of this article are affiliated and can report a benefit to Xataka. In case of non -availability, offers may vary. Images | Nothing In Xataka | The best mobiles, we have tried them and here are their analysis In Xataka | Nothing Phone (3rd) vs nothing phone (2a). What a mid -range mobile choose according to your tastes and needs

I had to look twice the price of the cmf phone 2 pro to believe it. Nothing’s submarket has broken the mid -range

Launch a sub -run and that their products end up stealing the prominence to the main brand. It is something that happened to Xiaomi in the mid -range with little, and something that will get CMF with your Phone 2 Pro. The company has just presented a new model with a value for money that, in increasingly expensive mobile times, is an overwhelming victory over its direct rivals. The Specs. A quick review to have context. MEDATEK DIMENSITY 7300 (same processor that some companies introduce in mobile phones of more than 400 euros), 5,000MAH battery, 6.77 -inch HDR 10+ screen with 3,000 shine nits, triple camera (50 MP, 8 MP angular and teleobjective of 50 megapixels). If we add the 8 + 128 GB of memory, the six years of security updates (three operating system) and the amount of accessories that we can add (covers, interchangeable lenses, wallet), the set is winner. The price. 249 euros for the 128 GB version and 279 euros for the 256 GB, the most recommended by far. A Little x7 It went on the market at a price of 299 euros just three months ago, with similar specs (some better, others worse than those of this CMF). Be that as it may, launching a mobile of 249 euros in the mid -range is an exception. If we analyze the market in search of similar mobiles, we find alternatives such as Moto Edge 60 for 429 euros, or the Galaxy A55 for 479 euros. Nothing. CMF is a nothing sub -which, curiously, begins to offer even more interesting alternatives. A year ago the company launched the Nothing Phone 2Aa phone with a 7200 dimensity, a screen with less brightness, less cameras, less support and weakest sparces. Its price was 329 euros and, still, it was a good figure. He Phone 3a Pronot so far in Specs regarding this phone, costs 459 euros. I do not hide, I have had to consult twice the price of CMF Phone 2 Pro before preparing this piece, since I thought it was some kind of promotional offer. Those 249 euros put on the table a CMF that not only offers an alternative quality-price against their direct rivals: it is a price that positions it as an even more attractive candidate than some of his nothing brothers. Exception or norm. Nothing has not detailed how the CMF supply chain works, but we know that the CMF PhonE 1 is manufactured mainly in India. Given the tariff uncertainty, it will remain to check if this phone is an exception (as was the OnePlus 3 in its day offering high range at a ridiculous price), or if the socioeconomic and geopolitical context prevents again to enjoy such a price. I have it quite clear and, in the absence of trying it, I have a clear candidate to recommend when they ask me for an economic mobile. Image | CMF In Xataka | Nothing Phone (1), Analysis: Hype’s mobile is much more than a transparent design and some LEDs

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