Nothing CEO warns memory costs now exceed 50% of smartphone's hardware bill

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Bubbling Costs: Carl Pei is adding his voice to a growing list of industry insiders pointing to the rapid changes driven by the AI investment boom. RAM is now more expensive than ever, and consumer devices will likely have to adapt to these higher component costs.

Nothing co-founder and CEO Carl Pei has said that AI is making components significantly more expensive, warning that a reckoning is coming for consumers buying new devices. In a recent post shared on his X account, Pei said memory chips now account for more than 50% of the total hardware bill of materials in a smartphone.

DRAM – and, likely, solid-state storage as well – has become the most expensive element in a phone's bill of materials. Pei illustrated how rising costs are affecting his company's business:...

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