BT Warns Smartphone Prices Could Rise as AI Boom Drains Memory Chip Supply
Updated
Updated · The Guardian · May 21
BT Warns Smartphone Prices Could Rise as AI Boom Drains Memory Chip Supply
4 articles · Updated · The Guardian · May 21
BT said smartphone prices could rise as AI-driven demand for memory chips tightens semiconductor supply, with chief executive Allison Kirkby also warning that router costs may come under pressure.
Tech groups are buying large volumes of chips for AI datacentres, consuming current supply and future production capacity; Kirkby said BT has not yet seen premium handset price hikes but expects makers such as Apple to pass on higher costs.
The squeeze is already showing up across electronics: Microsoft, Samsung and Dell have raised prices and cut cheaper models, while Sony lifted the US PlayStation 5 price by $100 to $649.99 and Nintendo will raise the Switch 2 to $499.99 in September.
The warning came as BT reported a 4% drop in annual revenue to £19.7 billion, an 8% rise in pre-tax profit to £1.4 billion, and expanded its cost-cutting target to £3.7 billion through March 2030.
As AI's appetite for chips grows, are affordable electronics becoming a thing of the past?
Beyond pricier gadgets, what is the AI boom's hidden environmental cost to our planet and local communities?