This is the most expensive thing on a smartphone.

Carl Pei is the CEO of Nothing - a company that owns many unique smartphone models such as Nothing Phone (4a) pro. Photo: Nothing .

The consumer electronics industry is witnessing a major structural shift at a faster-than-expected pace, driven by a surge in investment in AI. This shift is forcing consumer devices to adapt to ever-increasing component costs.

Recently, Carl Pei, co-founder and CEO of Nothing, warned about this situation. He stated that memory chips have now surpassed microprocessors and become the most expensive component in a smartphone's materials catalog.

"Memory is currently the most expensive component in a smartphone. It's more expensive than the processor, more expensive than the screen, and can account for more than 50% of the total hardware bill," Carl Pei shared on his personal X account.

To illustrate this phenomenal growth, the CEO cited his company's own product as an example. For the Nothing Phone (4a), the cost of memory chips doubled from the design concept to the product launch. Then, it doubled again.

Memory chips have surpassed processors, cameras, and screens to become the most expensive component in a phone. Photo: Wired.

You may also like

How are Vietnamese KOLs ranked and categorized?With real-world data from social media and a multi-layered verification mechanism, the National KOL Portal aims to become a transparent benchmark for the Vietnamese influencer market.

13th National Congress of the Youth Union: Shaping the Role of Youth in the New EraBuilding on the outstanding achievements of the 2022-2026 term, the 13th National Congress of the Youth Union has established key tasks aimed at developing a generation of young people who are courageous, creative, technologically proficient, and actively contribute to the development of the country.

The KN-23B missile has a range of 900km, a 2.5-ton warhead, and addresses the challenge of modern air defense.The emergence of the KN-23B missile variant with its immense destructive power is changing the landscape of tactical missile warfare, challenging all modern air defense systems.

Previously, smartphone manufacturers operated based on a traditional rule: the cost of hardware components would gradually decrease over time. However, the massive demand from AI data centers has completely disrupted the global supply chain, reversing this established rule and driving DRAM and storage memory prices to record highs.

The direct consequence is that smartphone prices on the market are being pushed up. New phone models launched since February all have starting prices about $100 higher than their predecessors. In India, one of the key markets for the Nothing product line, devices that previously cost over $300 have now increased by more than $70 .

This situation cannot be resolved by stockpiling components before production. Currently, chip manufacturers are distributing products according to quotas. This forces phone companies to accept the allocated quantity, regardless of the price imposed.

Not only smartphones, but the PC industry has also been heavily impacted. Karen Parkhill, Chief Financial Officer (CFO) of HP, noted that the proportion of memory in the total cost of a PC's components has now increased to over 30%.

Amidst a volatile market, the CEO of Nothing offers candid advice to consumers.

"If you're looking to upgrade your phone, the best time was yesterday. The second best time is right now. This year's shopping season won't have the deep discounts that people are used to," he said.

This is the most expensive thing on a smartphone.

The artificial intelligence (AI) craze is driving up memory chip prices dramatically, making this component the most expensive part and accounting for more than 50% of a smartphone's hardware cost.

Trending by Category

A peaceful night in my country

Joy through the Quang Trung campaign

The billionaire village of the Xoi Dang ethnic group in Tra Linh commune.