Overview
- Pei described a structural break in the industry as demand from AI data centers pushes up DRAM and NAND prices and shifts supplier priority away from phones.
- He said some memory components have already tripled in price with further increases expected, ending the long trend that let brands boost specs without raising prices.
- According to Pei, memory could become the single largest materials cost by year-end, with parts that were under $20 last year potentially exceeding $100 by late 2026.
- Manufacturers, he said, face a choice between raising handset prices by 30% or more or cutting specifications, with entry and mid-tier segments at risk of shrinking by about 20%.
- Pei said Nothing’s own phone prices will rise as it adopts faster storage such as UFS 3.1, and he predicted the industry’s specs race will slow as user experience takes priority.