Nothing cancels this year’s CMF phone due to RAM prices - The Verge

Nothing has officially scrapped its anticipated CMF Phone 3 Pro for 2026, citing an unprecedented surge in RAM prices that has rendered the budget-friendly device financially unviable. This abrupt cancellation underscores a growing 'memflation' crisis, where memory components are now the most expensive part of a smartphone, forcing manufacturers to either hike prices dramatically or rethink their product portfolios. The decision highlights the escalating pressures on the global smartphone industry, particularly affecting affordable segments as chipmakers prioritize high-margin AI infrastructure. The current predicament stems from a structural shift in the semiconductor market, with insatiable demand for High-Bandwidth Memory (HBM) from AI servers diverting manufacturing capacity away from conventional DRAM and NAND flash used in consumer electronics. This has led to contract prices for DRAM surging by a staggering 90-95% quarter-over-quarter in Q1 2026 and projected to rise another 58-63% in Q2, while NAND flash prices are seeing similar jumps. Nothing co-founder, Carl Pei, noted that RAM now accounts for 50% of a phone's hardware bill, a stark inversion of historical cost structures. This 'memory winter' is disproportionately impacting entry-level and mid-range smartphones, where memory constitutes 15-20% of the Bill of Materials, often making price increases of 50-85% inevitable for consumers if products were to launch. The ripple effect is already contributing to inflation in key markets like India, where electronics prices are rising by 1-3% monthly. Analysts forecast the memory chip shortage to persist for another 3-5 years, with major capacity expansions not expected until 2028 or later, meaning the era of cheap memory is effectively over. This forces smartphone Original Equipment Manufacturers (OEMs) to streamline product portfolios, potentially maintain or even reduce RAM specifications, and inevitably pass higher costs to consumers, especially for premium devices. Consumers can expect fewer affordable options and longer device upgrade cycles as new device prices surge by 13-17% in 2026. The industry will be watching closely for how other budget-focused brands adapt to this 'structural scarcity' and if governments, particularly in India, accelerate domestic semiconductor manufacturing initiatives to mitigate future vulnerabilities.