BT has said the cost of smartphones could rise as technology companies buy up semiconductor chips because of the boom in artificial intelligence, putting pressure on supply chains.<\/p>\n
The telecoms company\u2019s chief executive, Allison Kirkby, said she was anticipating shortages as tech firms bought large quantities of memory chips<\/a> to power the datacentres relied on by AI.<\/p>\n Kirkby said: \u201cIt\u2019s common knowledge that the chip market is under demand by the rise in AI. We are working very proactively with our suppliers.\u201d<\/p>\n Price increases would mainly hit smartphone handsets, she said, but could also affect the cost of routers. Memory chips are essential for almost every modern item of electronics and are also used in other important components such as graphics cards.<\/p>\n Kirkby added: \u201cI\u2019m sure the industry with its partners will do the best it can to minimise the impact on pricing in the marketplace. But with chip shortages everywhere, that will put pressure on pricing in certain parts of the market, not just in our sector, going forward.\u201d<\/p>\n She said she had not yet seen price increases from premium handset manufacturers, but expected companies such as Apple to pass higher costs on to customers. \u201cI\u2019m sure Apple will do the best to minimise any supply chain weaknesses,\u201d Kirkby added.<\/p>\n The latest model of Apple\u2019s smartphone, the iPhone 17, costs from \u00a3799, or \u00a31,099 for the 17 Pro model, while Google\u2019s Pixel 10 pro retails for about \u00a31,199.<\/p>\n The largest manufacturers of laptops and phones, including Microsoft, Samsung and Dell, have already begun to put up prices in response to the chip shortages and have pulled cheaper models from the market.<\/p>\n Sony has also hiked the price<\/a> of its PlayStation 5<\/a> consoles, including a $100 (\u00a375) increase in the US, while Nintendo has confirmed a price rise for its Switch 2.<\/p>\n Updated US prices, which came into effect on 2 April, put the standard PS5 at $649.99, up from $549.99. The price of Nintendo\u2019s Switch 2 will rise in September from $449.99 to $499.99 in the US, and \u20ac469.99 (\u00a3406.61) to \u20ac499.99 in most European countries.<\/p>\n