Nothing CEO warns phone prices will keep rising
▼ Summary
– Memory is now the most expensive smartphone component, accounting for over 50% of the total hardware bill.
– For Phone (4a), memory costs doubled between the design phase and launch, and have doubled again since.
– Phone prices have risen up to $100 since February, with Indian phones over ₹30K seeing jumps of ₹7,000 or more.
– In a memory shortage, components are allocated rather than bought, preventing stockpiling at fixed prices.
– The best time to upgrade is now, as upcoming sales will not offer typical discounts due to rising costs.
The cost of memory has overtaken processors and displays to become the single most expensive element inside a smartphone, now accounting for over half of the total hardware cost. This shift is driving a sustained increase in phone prices that shows no signs of slowing down.
For the Phone (4a), memory expenses doubled between the initial design phase and the product launch, and have since doubled again. I highlighted this trend earlier in the year, and it is now materializing at an even faster pace than anticipated.
Smartphone prices are climbing and will continue to rise into next year. Since February, new models have launched with price tags up to $100 higher than their predecessors. In India, devices priced above ₹30,000 have experienced increases of ₹7,000 or more.
The common reaction is to purchase ahead of the curve. However, that strategy no longer works. During a memory shortage, supply is allocated rather than freely bought. Manufacturers receive what is available, at the prevailing market price.
If you have been delaying an upgrade, the ideal moment was yesterday. The next best option is today. This year’s sale season will not offer the steep discounts consumers have come to expect.
(Source: The Verge)
