Currys Chief Executive Alex Baldock has warned the cost of tech such as mobile phones and laptops will increase this year as memory chip supplies struggle to cope with surging demand for AI.
The caution comes as Apple upped prices on its iPads and Macs by approximately 20% last week.
Apple described the situation, with demand pushing memory chip prices up, as an “unprecedented challenge” for the electronics industry.
The Times reports Baldock, who is set to depart the business in a healthy position, said: “AI and data centres continue to swallow the world’s supply not just of memory but also processing [chips] … leaving less left over for the likes of mobile phones and laptops."
He added: “We’ve seen it coming for some time. We’ve made sure that we’ve bought forward. We’ve got good security of supply in computing and mobile phones until September.
“Inevitably, we won’t be able to dampen it all, but we’ll be able to do a good job of keeping prices as low as possible for consumers.”
Currys has enjoyed a strong year financially, seeing group revenue rising 6% to £9.25billion.
Adjusted profit before tax also rose 18% year-on-year to £191million.
Baldock, who is set to be replaced by Fredrik Tønnesen as Group Chief Executive Officer next month, said: "Our performance continues to strengthen. Profits and cash flow are healthily up, supported by a balance sheet that has never been stronger, even after growing shareholder returns.
"Currys is trending in the right direction on every dimension that matters. Colleague engagement is among the top 10% of global businesses, customers are saying they're happier (with record satisfaction) and showing they are, as we grew share and extended our lead as market #1. Top line and bottom line, products and Services, the UK&I and the Nordics: all are in growth.
"The outside world remains uncertain, and we are not counting on it to do us any favours. Still, there is much more in the tank here. Growth opportunities such as B2B have almost trebled the market accessible to us, are driving the topline today, and have much further to go. And, though we've significantly increased the adoption of the solutions that delight customers and boost margins, the prize here remains larger still.
"In Fredrik, the business has an outstanding leader to continue and accelerate this progress. I'll be a loyal Currys customer, advocate and shareholder all my life, and will be cheering on Fredrik and his world class team. As ever, my heartfelt thanks and admiration go to the thousands of capable and committed colleagues who are building this ever-stronger Currys."
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