Nothing founder Carl Pei today said that the cost of memory components is now more expensive than the processors and phone screens used in their devices. Furthermore, the cost of memory alone can account for more than 50% of a device.
In the case of the Nothing Phone (4a), he revealed that memory costs doubled between the time the company decided to build the device and when it was launched. It has doubled again since the Phone (4a) was launched. This is in line with Xbox CEO Asha Sharma's statement yesterday that the cost of Xbox memory has increased 4 times.
In January, Pei had already predicted that the device price would increase, but it happened earlier than originally expected. Memory costs are increasing due to the needs of artificial intelligence (AI) data centers that are being built rapidly. OpenAI, for example, has ordered 40% of the supply of memory wafers before they can be converted into memory to ensure enough supply for the Project Stargate data center.
The situation faced by Nothing is not unique to them. Sony, ASUS, Acer, Xiaomi, and even Samsung themselves are increasing device prices due to the rising cost of memory. The irony for Samsung is that the Samsung Semiconductor business is so profitable that employees receive bonuses worth millions of Ringgit. Other businesses such as smartphones are affected as profits decrease due to rising costs.
