Nothing CEO Carl Pei Predicts Smartphones May Not Get Major Discounts During Sales Due to Ongoing Chip Sh... - Gadgets 360

Nothing CEO Carl Pei has warned that smartphones may not see significant discounts during sales periods due to ongoing semiconductor supply chain challenges. This prediction reflects the persistent im... Read original →

The narrowing of smartphone discounts stems not from temporary imbalances but from structural bottlenecks in advanced nodes. Processes at 3nm and below rely heavily on EUV lithography, with TSMC in Taiwan, China dominating nearly all capacity—shifting pricing power decisively toward foundries. Extended equipment lead times and rising material costs are forcing brands to pass expenses downstream. Regulatory pressures from U.S. and EU export controls, coupled with local fab subsidies, impose dual compliance burdens and necessitate redundant supply chains. Samsung and Apple will likely accelerate vertical integration of in-house chips, while smaller players like Nothing abandon price wars for premium niche positioning. Over the next 12–24 months, the era of 'volume through low pricing' ends; chip access—not marketing—becomes the decisive competitive edge, accelerating industry consolidation.