BT warns of smartphone price rises due to chip shortages from AI boom

2026-05-21 · Source: AI (artificial intelligence) | The Guardian · Field: Business & Management — Corporate Strategy & Leadership, Operations & Process Management, Project & Product Management · Depth: Fundamental Awareness, quick

Summary

BT, a major telecoms company, has warned that smartphone prices are likely to increase due to a global shortage of semiconductor memory chips, driven by the artificial intelligence boom. CEO Allison Kirkby stated that tech firms are buying large quantities of chips to power AI datacenters, putting pressure on supply chains. While premium handset manufacturers like Apple have not yet raised prices, this trend is expected to impact devices such as the iPhone 17 (starting from £799) and Google Pixel 10 Pro (£1,199). Other companies like Microsoft, Samsung, Dell, Sony, and Nintendo have already increased prices for laptops, phones, and consoles, with the PlayStation 5 rising by \$100 to \$649.99 in the US and the Nintendo Switch 2 increasing to \$499.99. BT also reported plans to cut costs by £700m, extending its restructuring to March 2030, and saw a 4% fall in revenues to £19.7bn.

Key takeaway

For consumers considering new electronics purchases, anticipate higher prices for smartphones, laptops, and gaming consoles in the coming months. The AI-driven demand for memory chips is creating significant supply chain pressure, leading manufacturers like Apple, Sony, and Nintendo to pass increased costs onto customers. You should factor these rising costs into your budgeting and purchasing decisions, as the trend is expected to continue.

Key insights

The AI boom's insatiable demand for memory chips is driving electronics price increases and supply chain pressures across multiple sectors.

Principles

• AI demand strains global chip supply.
• Chip shortages drive electronics price inflation.
• Server farm expansion consumes production capacity.

Topics

• Artificial Intelligence
• Semiconductor Chips
• Smartphone Market
• Consumer Electronics
• Supply Chain
• Price Inflation

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Editorial summary, takeaway, and curation by AIssential. Original article published by AI (artificial intelligence) | The Guardian.