Higher prices for smartphones, laptops, and other consumer electronics are inevitable this year, according to Alex Baldock, chief executive of Currys, the United Kingdom’s largest consumer electronics retailer.
Baldock attributed the impending cost increases to a global shortage of memory chips, driven by insatiable demand from artificial intelligence infrastructure and data centers.
The surge in AI-related silicon consumption is leaving less supply available for traditional consumer devices, creating a bottleneck that retailers expect to pass on to shoppers.
The warning highlights a growing tension within the semiconductor supply chain, where capital-intensive AI projects are prioritizing high-margin data-center components over consumer-grade memory.
As hyperscalers and tech giants continue to expand their AI capabilities, the competition for silicon capacity intensifies.
This dynamic suggests that the consumer electronics sector may face margin pressure or reduced volume growth as manufacturers struggle to balance supply between enterprise and retail channels.