Nothing CEO says phone prices are going to keep going up
Memory is now the most expensive component in a smartphone. It’s more expensive than the processor, more expensive than the display, and can account for more than 50% of the total hardware bill.
For Phone (4a), memory costs doubled between when we decided to build the device and when it launched. They’ve doubled again since.
I posted about this earlier this year. It’s now playing out, faster than predicted.
Phone prices are going up, and they’ll keep going up into next year. Since February, new phones have been launching up to $100 more expensive than their predecessors. In India, phones above ₹30K have seen price jumps of ₹7,000 or more.
The natural instinct is to buy ahead. It doesn’t work that way. In a shortage, memory is allocated, not bought. You get what you’re given, at the current price.
If you’ve been waiting to upgrade a device, the best time was yesterday. The next best time is now. This year’s sale season won’t have the discounts people are used to.
Memory is now the most expensive component in a smartphone. It’s more expensive than the processor, more expensive than the display, and can account for more than 50% of the total hardware bill. For Phone (4a), memory costs doubled between when we decided to build the device and when it…
