This Favorite Brand is Killing Its Affordable Smartphones

Is Nothing killing off its affordable smartphones? Following a blunt warning from the industry, it looks like rising chip costs are forcing brands to raise prices by up to 30%. Find out how this affects Nothing’s new Phone (4a) series.

Smartphone brands are facing a difficult year due to the rising costs of memory chips. Many prominent mobile manufacturers have already hinted at plans to pass this financial burden to consumers by increasing the price of their devices. Recently, Nothing has expressed the same sentiment. The company noted that the smartphone industry-wide could cost up to 30% more than before.

Nothing Blames the AI Race for Costlier Smartphones

In a post titled “Why Your Next Smartphone Will Cost More” on X, Carl Pei shared his outlook on the smartphone industry in 2026. The most striking takeaway from his piece is the inevitable price hike for smartphones this year. This is primarily due to a shortage of memory chips brought on by excessive demand from AI data centers.

Pei shared data showing that memory components have already tripled in price. He gave a concrete example, stating that memory modules, which cost less than $20 a year ago, could exceed $100 by the end of 2026 for top-tier models.

Furthermore, he highlighted that mobile brands like Nothing are now forced to choose between downgrading the specifications or increasing prices to compensate for these rising costs.

2026 is the year the “specs race” ends. As the industry resets, experience becomes the only real differentiator. That is exactly what Nothing was built for.

He argued that the mid-range segment, which typically offers high-end specs at lower prices, will be the most affected by this shift. Because of this, he views Nothing as a brand that will focus on enhancing the user experience rather than just winning a specifications race.

For Nothing, the path forward appears to be a price increase for its next-generation smartphones. Pei noted that some competitors are already justifying increases of up to 30%.

Nothing’s Next Phone is Getting Pricier

The CEO also confirmed plans to bring faster UFS 3.1 storage to some models in Q1 of this year. This likely refers to the upcoming Nothing Phone (4a) series, successor to the Phone (3a) we tested. It is expected to be the first in the A series to receive this storage upgrade. The series, which may include a standard and a Pro model, is rumored to be announced around March 2026.

As for the cost, the Phone (3a) debuted at $379. Given the current pricing pressures Pei described, it would not be surprising if the standard Phone (4a) starts closer to $500. This shift provides a clear signal of what is in store for Nothing’s 2026 lineup. While time will tell if market factors might eventually abate these price increases, the current situation suggests that your next tech purchase is almost certainly going to be more expensive.

What are your plans for 2026? Are you holding off on your next tech purchase to avoid paying more? We want to hear your thoughts in the comments.