As RAM prices continue to skyrocket globally, impacting various businesses, it may have serious implications for the smartphone market as well, according to Carl Pei. The Nothing CEO went on to confirm that prices for Nothing phones, as well as inflated RAM prices have shot up making costs.
In a conversation on his own YouTube channel, Pei offered his thoughts on the ongoing RAM shortage, stating that he has never seen anything like it in 20 years.
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"RAM prices are increasing significantly... I've never seen this before in like 20 years in the industry. You can't even predict what it's going to be next month or next week," Pei said.
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NDTV Profit reported in September that the RAM prices have increased 3x due to the sudden surge in AI-led demand, which has acted as a bottleneck for the global supply of RAMs.
Pei went on to confirm that Nothing phones will see price increases this year due to the ongoing RAM shortage.
"Much like many other brands, we'll have to announce price increases across our smartphone portfolio as well," he added.
The Nothing CEO further stated that the RAM shortage will serve as a major blow for companies looking to deliver value by lowering making costs. With RAM prices shooting up 3-4x, there will be no room for companies to create that value.
"It's going to be really challenging for the companies that only focus on value for money because now you don't have value for money anymore, nobody has," he said.
"So companies, they have two choices or two options of what to do. Either you just increase the price of the product because you still have to, you know, run a company, and try and be profitable, or you keep the price, but you reduce what's inside because the RAM has taken up a larger percentage-wise of the overall cost," he added.
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