Nothing Cancels CMF Phone 2 Pro Successor Due to Soaring Memory Costs

Memory component prices have forced Nothing to abandon plans for a follow-up to its popular CMF Phone 2 Pro, the company confirmed this week.

"Current memory component prices prevent the company from producing a phone that represents a meaningful upgrade at a price point consistent with the CMF brand."
— Akis Evangelidis, Nothing Co-founder

Cancellation Details

Nothing co-founder Akis Evangelidis announced on X that development of a successor device had begun but has since been halted. The reason? A dramatic spike in the cost of DRAM and NAND memory components.

Evangelidis explained that releasing a device with the same specifications as the existing CMF Phone 2 Pro in the current market would cost approximately 50% more.

The CMF Phone 2 Pro launched in April 2025 at around A$427 (~US$275). Under present conditions, manufacturing the same model would cost between A$490 and A$567—a price point that Evangelidis says undermines the CMF brand's value proposition.

Industry Context

Nothing CEO Carl Pei revealed that memory is now the most expensive component in a smartphone, accounting for more than 50% of total hardware costs. Pei noted that memory costs for the company's Phone 4A doubled between the decision to build and launch, and have doubled again since.

Industry analysts point to constrained supply and surging demand from AI data centers as the primary drivers of these cost increases. Apple has also warned of "unsustainable" price hikes in the memory market.

Smaller manufacturers like Nothing are disproportionately affected compared to industry giants like Samsung and Apple, due to significantly limited purchasing power in the memory market.

Broader Market Implications

The ramifications extend beyond Nothing:

• Budget and mid-range smartphones may face higher prices, reduced specifications, or delayed upgrades
• Premium smartphones could also see price increases if component costs remain high
• Industry analysts warn that upcoming flagship devices across the industry could carry noticeably higher price tags

Company Outlook

Despite the cancellation, Evangelidis emphasized that CMF will launch several new products and enter new product categories this year. He also stated that Nothing's smartphone launch season is not over.

The company has teased a device called the Nothing Phone 4b, though it has not confirmed whether this is related to the cancelled CMF device.