2026 Crisis Worsens, Mobile Phone Vendors Face Dire Outlook

Jakarta, CNBC Indonesia - Smartphone manufacturer Nothing has decided to cancel the launch of its latest CMF Phone series this year. The decision was taken amid a surge in component prices, especially RAM memory, which has made the production cost of affordable-class phones increasingly expensive. To date, the CMF Phone series has only launched two models. However, for the time being, the product line will not receive a successor because the rise in material prices has made its development no longer economical. The CMF Phone has been known as Nothing’s budget smartphone line, offering high value in its class. Yet, the recent spike in component prices has exerted significant pressure, particularly on devices in the affordable price segment. Nothing co-founder and the figure behind the development of the CMF Phone series, Akis Evangelidis, confirmed via platform X that the company is cancelling the launch of the next-generation CMF Phone. “We were actually developing a successor, but with memory prices at their current level, we cannot make a phone that truly feels more advanced at a price that still makes sense for CMF. Because of that, we decided not to launch a new CMF phone this year,” Evangelidis said in a post on X, as quoted by 9to5Google, Monday (22/6/2026). In a follow-up post, Evangelidis revealed that current market conditions have caused production costs to soar drastically. According to him, if Nothing were to launch a device with exactly the same specifications as the CMF Phone 2 Pro, its production cost would now be around 50% more expensive than before. He also touched on the availability of the CMF Phone 2 Pro, which has long been out of stock. This condition is suspected to be related to the skyrocketing cost of materials needed to produce the device. Nothing’s decision to temporarily halt the development of the CMF Phone came just days after Nothing CEO Carl Pei revealed that RAM has now become the most expensive component in smartphone manufacturing. According to Pei, memory costs have even surpassed the price of processors and screens. He stated that RAM can account for “more than 50% of the total hardware cost” in a smartphone, although the proportion may differ depending on the type of device being produced. This situation indicates that the memory price crisis hitting the technology industry in 2026 is worsening. As long as RAM prices remain at high levels and show no signs of decline, the chance of the CMF Phone series returning in the near future is considered very slim.