The budget smartphone segment is currently facing a harsh reality check. The rising cost of RAM, a fundamental component, has emerged as a critical barrier to production, forcing manufacturers to reassess their strategies for affordable devices.
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CMF Phone’s Next Release Halted Due to Soaring RAM Costs
Nothing’s CMF Phone series was established to offer a more budget-friendly alternative, quickly earning a reputation for delivering exceptional value. These devices were engineered to provide the best possible specifications within the affordable smartphone category, gaining significant user recognition for their impressive quality-to-price ratio.
Following this success and considerable user interest, Nothing had plans for a successor model. However, a rapid and substantial increase in the cost of components, particularly RAM, has rendered the project economically unfeasible. As a result, Nothing has made the difficult decision to postpone the launch of the next CMF Phone indefinitely this year. This effectively puts a hold on the development of a product line that was, until recently, a crucial part of the company’s strategy in the fiercely competitive budget market.
RAM: The Unexpected Costliest Component
Akis Evangelidis, a co-founder of Nothing, elaborated on this decision, explaining the immense pressure current market prices for memory components are exerting on production. He stated that at present RAM prices, it’s impossible to develop a new CMF device that offers a substantial upgrade while simultaneously retaining the series’ characteristic affordability. He further highlighted the severity of the situation, estimating that even releasing a phone with specifications comparable to its predecessor would lead to an alarming production cost increase of roughly 50%.
A lot of you have been asking when the next CMF phone is coming and as always we’d rather be transparent.
CMF Phone 2 Pro was a product we were incredibly proud of. It even won Budget Phone of the Year from MKBHD and the response from all of you made it even more special.
We…
— Akis Evangelidis (@AkisEvangelidis) June 19, 2026
Carl Pei, CEO of Nothing, further emphasized the broader market trend, stating that RAM has now become the single most expensive component in smartphone manufacturing. In some instances, the cost of RAM surpasses that of the processor or even the display, potentially accounting for over 50% of a device’s total hardware cost. This highlights a significant shift in component pricing dynamics, impacting not just Nothing, but the entire budget smartphone ecosystem. This unprecedented rise in RAM prices isn’t isolated to Nothing; it’s a systemic issue affecting the entire smartphone industry, as seen in recent reports detailing similar challenges faced by other major manufacturers struggling with profitability crises due to escalating component costs. For more insights into how component costs are impacting the industry, read about market struggles and profitability crises.
Despite these hardware challenges, Nothing continues to innovate, with CEO Carl Pei often discussing the future of smartphones and the potential impact of AI. He hints at a future where traditional apps might evolve or even disappear as AI integration deepens, showcasing the company’s forward-thinking approach even amidst current hardware hurdles. Explore more about Nothing’s vision for the future of mobile technology and the AI revolution.
Frequently Asked Questions (FAQ)
Nothing decided to postpone the launch of the new CMF Phone due to a significant and sudden increase in the cost of crucial components, especially RAM. This made it economically unfeasible to produce a new model that could offer both an upgrade and maintain the series’ signature affordable price point.
According to Nothing’s co-founder Akis Evangelidis, producing a new CMF Phone with similar specifications to its predecessor would result in production costs increasing by approximately 50%. CEO Carl Pei added that RAM has become the single most expensive component in smartphones, sometimes exceeding 50% of the total hardware cost.
This situation highlights a significant challenge for the entire budget smartphone market. Manufacturers will need to find innovative ways to manage rising component costs, potentially by optimizing other aspects of production, sourcing alternative materials, or adjusting their pricing strategies to keep affordable devices viable for consumers.
Source: 9to5Google, Internal reporting. Opening photo: Nothing / Press materials
