Currys warns memory shortage will raise gadget prices
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The AI memory squeeze is about to hit Europe’s shopping baskets
Currys, Britain’s largest electricals retailer, has warned that smartphones, laptops and TVs will cost more later this year. The AI data-centre boom is absorbing the world’s memory chips, and CEO Alex Baldock states the shortage is about to reach the high street.
July 3, 2026 – 1:12 pm
Image by: Currys
The AI memory squeeze has been an industry story for months. Now it is heading for the till. Currys, a benchmark for consumer electricals retailers in the UK, Ireland and Nordics, has signaled that prices of phones, laptops, and TVs will increase later this year due to a shortage of silicon caused by the booming AI and data centers market.
The high street catches up
Currys’ scale provides a clear indicator of where consumer prices are headed. CEO Alex Baldock explained that AI and data centers are consuming global supplies of silicon, leaving less for other devices like mobile phones and laptops, which will result in "availability challenges" and price inflation. He declined to provide specific figures.
Buying time until September
Despite the challenge, Currys plans to use its market leader purchasing power to secure stock and limit price increases. They have already pre-purchased significant quantities of computing and mobile phones, ensuring supply until at least September. After that, the shortage will intensify as the current cushion diminishes.
Currys is not the only company sounding the alarm; Apple has already raised prices, and Xbox consoles have also seen price hikes. Analysts predict the crunch will worsen before improving.
Where the chips went
The root cause is straightforward: memory manufacturers are prioritizing production for deep-pocketed AI hyperscalers like Meta, Google, and Amazon, leaving gadget makers vying for remaining supplies. Even two-decade-old chip standards have been affected, contributing to Micron’s trillion-dollar valuation. Some relief from cheaper Chinese DRAM may arrive, but not yet at scale.
A timely warning
The Currys price warning coincides with an EU-funded report that cautions Europe’s chip industry faces a bleak future due to reliance on US technology and Chinese export controls. The report advocates for building domestic supply chains quickly.
Solid results, nervy market
Currys’ financial results were positive; they reported adjusted pre-tax profit of £191 million on revenue up 6% to £9.25 billion. UK and Ireland like-for-like sales rose 3%, while the Nordics saw a 6% increase. Sales of large TVs tripled during the World Cup, and the summer heatwave boosted fan and air conditioning sales.
Despite these figures, investors reacted by reducing Currys’ share price by 3.3%, trimming year-to-date gains to 25.6%. The company will see a leadership change with Alex Baldock, who led the retailer’s turnaround, leaving on August 31 to run Boots. Fredrik Tønnesen, currently head of Nordics, will take over as CEO.