By Joanna Partridge
Publication Date: 2026-05-21 14:05:00
BT has said the cost of smartphones could rise as technology companies buy up semiconductor chips due to the artificial intelligence (AI) boom, putting pressure on supply chains.
The telecommunications company’s chief executive, Allison Kirkby, said she expected shortages as technology firms bought large quantities of memory chips to power the data centers that AI relies on.
Kirkby said: “It is well known that the chip market is under demand due to increasing AI. We are working very proactively with our suppliers.”
Price increases would primarily affect smartphones, but could also affect the cost of routers, she said. Memory chips are essential for almost every modern electronic device and are also used in other important components such as graphics cards.
Kirkby added: “I’m sure the industry, with its partners, will do its best to minimize the impact on prices in the market. But given chip shortages everywhere, that will put downward pressure on prices in certain cases…
