Nothing CEO Carl Pei warns that memory has become the costliest phone component, accounting for over 50% of bill-of-materials costs in some models. The shortage is expected to keep phone prices elevated through 2027.
RAM and storage memory now dominate smartphone manufacturing costs, replacing processors as the primary expense driver. Pei indicated that rising memory prices will compress margins across the industry and eliminate typical holiday discounts consumers expect this year.
The shift reflects ongoing supply constraints in memory chip production. As AI features and multitasking demands increase, devices require more RAM and storage capacity, further inflating costs.
Manufacturers face a difficult balance: absorb higher component costs or pass expenses to consumers. Pei's projection suggests the industry expects limited relief from memory price pressures over the next two years, signaling sustained price floors for flagship and mid-range devices.
Consumers planning upgrades may face fewer promotional opportunities and higher entry prices across brands. The memory shortage could reshape purchasing patterns and extend device replacement cycles.
Nearly a decade after its 2017 debut, Tesla's Semi truck entered volume production in April 2026. The company demonstrated the long-awaited vehicle at a Thursday event held at its new Semi factory in Nevada.
Waymo has accelerated its autonomous vehicle deployment, growing its Texas fleet by nearly half in the past month. The company is establishing strongholds across multiple regions.
A Starlink ground station near Warsaw caught fire Wednesday night in what Polish officials suspect was an arson attack. The facility helps provide internet connectivity to Ukraine.
Meta has released the Ray-Ban Meta Gen 3 smart glasses, offering modest improvements over Gen 2 at a higher cost. The new model targets existing users and AR enthusiasts willing to pay for marginal upgrades.