Nothing Co-founder Carl Pei Highlights Rising Smartphone Manufacturing Costs Due to RAM Prices
Carl Pei, co-founder of Nothing, has stated that RAM is now the most significant hardware expense in smartphones, surpassing the combined cost of the processor and display. He attributed the surge in memory prices to high demand from AI-driven computing workloads, which is depleting global supply. This increase in manufacturing costs is reportedly translating into higher prices for consumers, with some new Android phones costing up to $100 more than their predecessors.
Carl Pei, co-founder of smartphone company Nothing, recently highlighted a significant increase in smartphone manufacturing costs, pointing specifically to the price of RAM.
According to Pei, RAM now represents a greater expense than the processor and display combined, making it the largest hardware cost in modern smartphones. This surge in memory prices is largely attributed to the escalating demand from AI-heavy computing workloads, which are consuming a substantial portion of the global supply.
This increased demand and subsequent price hike for memory components are pushing up overall smartphone manufacturing costs. Pei indicated that the impact is already evident in recent product launches, with some new Android phones showing price increases of up to $100 compared to earlier models.
(Source: Android Authority)
