The retailer says it has secured inventory through September, but expects AI-led pressure on memory chip supplies to drive up electronics prices later this year.
Consumers may have to pay more for smartphones, laptops and other electronic devices later this year as a tightening global memory chip supply begins to impact the market, according to UK electronics retailer Currys.
Speaking after the company announced its annual results, Currys CEO Alex Baldock said the rapid expansion of artificial intelligence infrastructure and data centres is consuming a growing share of the world’s memory chip production. As a result, fewer chips are available for consumer devices, creating supply constraints and putting upward pressure on prices.
While Baldock said it is too early to estimate the extent of future price increases, he noted that Currys has taken early steps to reduce the impact by securing inventory in advance. The retailer expects to have sufficient supplies of computing devices and smartphones through at least September, helping cushion customers from immediate shortages.
His comments come as concerns over semiconductor supply chains continue to grow. An EU-backed report recently warned that Europe’s chip industry remains vulnerable because of Chinese export restrictions, dependence on U.S. technology and limited domestic manufacturing capacity.
Despite the supply concerns, Currys reported a strong financial performance for the year ended May 2. Adjusted pre-tax profit increased 18% year-on-year to £191 million, while revenue rose 6% to £9.25 billion. Sales improved across both its UK & Ireland and Nordic businesses, with like-for-like revenue growing 3% and 6%, respectively.
The retailer also benefited from seasonal demand trends. Baldock said the upcoming FIFA World Cup boosted sales of large-screen televisions, with purchases of TVs measuring 90 inches or more tripling. Demand for home beer dispensers and hot tubs also increased, while recent hot weather lifted sales of fans and air-conditioning products.
Looking ahead, Currys said trading at the start of the new financial year has been encouraging and reaffirmed confidence in market expectations for adjusted pre-tax profit of about £198 million for 2026/27, despite ongoing economic uncertainty.
