BT warns of smartphone price rises due to chip shortages from AI boom
Summary
BT warns that smartphone prices may increase because many tech companies are buying a lot of semiconductor chips for artificial intelligence (AI) projects. This demand is causing shortages and higher costs for chips used in electronics like phones and routers. BT is also working to cut costs and reported steady profits despite losing many broadband customers.Key Facts
- The boom in AI has led tech companies to buy large amounts of semiconductor chips, causing shortages.
- Chip shortages will likely raise smartphone prices and may increase costs for routers too.
- Memory chips are used in many electronics, including phones, graphics cards, and datacenter servers.
- Premium phone makers like Apple may raise prices to cover higher chip costs.
- Other companies like Microsoft, Samsung, Dell, Sony, and Nintendo have already raised prices on devices.
- BT plans to save £3.7 billion over the next several years and extended its restructuring to 2030.
- BT lost 825,000 broadband customers in the year ending March but saw mobile phone customer losses at a record low.
- BT's revenue fell by 4% to £19.7 billion, while its pre-tax profits went up by 8% to £1.4 billion.
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