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.
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Frequently Asked Questions
Memory is now the most expensive smartphone component, more costly than the processor or display and over 50 percent of the hardware bill. For the Phone (4a), memory costs doubled twice between design and launch.
Since February, new phones have launched up to $100 more than their predecessors, and in India phones above Rs 30,000 have seen price jumps of Rs 7,000 or more.
The CEO says the best time was yesterday and the next best time is now, since this year's sale season will not have the discounts people expect. But in a shortage, memory is allocated rather than bought, so buying ahead does not always work.
Memory. It can account for more than 50 percent of the total hardware bill, exceeding the processor and the display.
