Nothing CEO Carl Pei has issued a significant warning to smartphone consumers, indicating that prices are set to rise 'inevitably' in 2026, with potential increases of '30% or more' for some brands. This imminent price surge is primarily attributed to a structural shift in the economics of smartphone manufacturing, specifically the skyrocketing costs of memory components like DRAM and NAND flash. The unprecedented demand for these chips from AI data centers is diverting supply and driving up prices, breaking the long-held industry assumption that components would consistently become cheaper over time. Pei noted that memory modules which cost less than $20 a year ago could exceed $100 by the year-end for top-tier models, fundamentally restructuring the bill of materials for smartphone makers. This situation presents a stark choice for brands: either pass on the increased costs to consumers through higher prices or compromise on specifications by cutting RAM and storage. Nothing itself plans to raise prices across its portfolio, particularly as it upgrades to faster UFS 3.1 storage for upcoming products in Q1 2026, rather than downgrading the user experience. This global trend signifies a turning point for the smartphone industry, moving away from a 'more specs for less money' model and emphasizing design and user experience as key differentiators.