Nothing has confirmed that its smartphones will become more expensive in 2026, with founder and CEO Carl Pei citing rising component costs driven by the rapid expansion of on-device AI.
Pei says growing demand for memory and performance headroom is reshaping smartphone pricing across the industry, leaving manufacturers with few alternatives beyond higher prices or reduced specifications.
Rising memory costs are driving price increases
Pei points to AI features as the primary pressure point, arguing that modern smartphones now require significantly more RAM and faster storage to support on-device models and real-time processing.
According to Pei, memory modules that cost under $20 a year ago could exceed $100 for top-tier configurations by the end of 2026, particularly as manufacturers race to offer more capable AI-driven experiences.
He stresses that this issue is not unique to Nothing and describes it as an industry-wide challenge where brands must either raise prices or compromise on specifications, with few viable alternatives.
While Pei avoids confirming exact figures for Nothing’s upcoming devices, he references hypothetical increases of “30% or more” when discussing the scale of cost inflation affecting smartphone components.
That context makes it clear that upcoming price rises are unlikely to be marginal, especially for devices positioned beyond the entry-level segment.
Image Credit (Trusted Reviews)
Pei suggests that some of Nothing’s future products will benefit from the increased investment which confirms that certain upcoming models are expected to move to faster UFS 4.1 storage.
That upgrade is widely seen as a step forward for performance and responsiveness, but it also reinforces the link between improved hardware and higher retail pricing.
Despite the cost pressures, Pei frames the situation as an opportunity for Nothing to shift focus away from pure specifications and toward overall experience, design, and software differentiation.
He describes 2026 as “the year the specs race ends,” arguing that consumers may begin to value how a phone feels and behaves over raw benchmark numbers.
That optimism comes after a mixed but generally strong 2025 for Nothing, which saw several well-received product launches alongside controversies that tested the brand’s momentum.
Whether buyers will accept higher prices in exchange for better AI performance and refined user experiences remains an open question, particularly as competitors continue to push power and performance as headline features.
For Nothing fans, the message is clear: future devices are set to cost more, and the company believes the trade-off will be justified by meaningful upgrades rather than incremental spec bumps.
The post Nothing’s smartphones will cost more in 2026, Carl Pei confirms appeared first on Trusted Reviews.
