Nothing says your next phone will be more expensive, specs race is over

RAM costs have shot by means of the roof, and this disaster impacts smartphones, too. In truth, firms like Xiaomi and Samsung have warned of upper phone costs in 2026. Now, Nothing co-founder Carl Pei has echoed these warnings, whereas giving us a touch of what to anticipate from Nothing telephones later this 12 months.

In a put up on LinkedIn and Twitter titled “Why your next smartphone will cost more,” Pei referred to as 2026 an unprecedented 12 months for electronics:

2026 will be an unprecedented 12 months for shopper electronics, and the smartphone business particularly. For fifteen years, the smartphone business relied on a single, dependable assumption: parts would inevitably get cheaper. While short-term volatility existed, the long-term downward development in reminiscence and show prices allowed for annual spec bumps with out worth hikes. In 2026, that mannequin has lastly damaged, pushed by a pointy and unprecedented surge in reminiscence prices.

The Nothing co-founder additionally hinted at what to anticipate from the corporate’s merchandise later this 12 months:

2026 is the 12 months the “specs race” ends. As the business resets, expertise turns into the one actual differentiator. That is precisely what Nothing was constructed for. The period of low-cost silicon is over. The period of intentional design is simply starting.

In different phrases, it appears like individuals who had been upset by Nothing phone specs in 2025 may be more upset in 2026. Nevertheless, Nothing has certainly emphasised elements like design and software program over specs since its inception. So this example doesn’t essentially symbolize a serious strategic change for the agency.

In saying so, rival producers have been round longer and have a tendency to have more feature-rich software program. Therefore, Nothing will actually need to construct on its visually distinct Android pores and skin if it hopes to supply a more feature-filled expertise.

Higher part costs might additionally hit Nothing tougher than different producers, as the corporate can’t leverage economies of scale to the identical extent as rivals. So an Apple, Samsung, or Xiaomi might obtain decrease costs by ordering elements in massive volumes. However, Nothing doesn’t ship practically as many telephones as these firms, which implies it may not be in a position to make use of high-volume orders to safe higher costs.

In any occasion, Pei’s assertion clearly means that the corporate may provide telephones with minimal {hardware} upgrades (and even some downgrades) in 2026. But you solely want to take a look at Samsung and OnePlus to comprehend Nothing received’t be alone this 12 months.