Warning issued to anyone buying laptops or phones

Mobile phone and laptop users have been warned of imminent price increases linked to a global microchip shortage. Electrical retailer Currys has urged customers to prepare to pay more for phones, laptops and other gadgets amid a drop in silicon availability.

Alex Baldock, outgoing boss of the firm, said: “AI and data centres are eating up the world’s supply of silicon, leaving less for the likes of mobile phones and laptops.” He added that the shortage would create “availability challenges” and make price rises “inevitable”.

“We’ve seen this coming for some time; we’ve made sure we’ve bought [silicon] forward, so we’ve got good security of supply in computing and phones until at least September,” the retail boss continued.

“We’re working really hard to protect the consumer as far as possible from price rises.”

Currys may be better placed than its competitors to absorb the losses, recording steady demand as other retailers find shoppers tightening their purse strings.

The business reported an 18% rise in adjusted pre-taxed profits to £191million for the year to May 2.

Susannah Streeter, chief investment strategist at Wealth Club, said: “Currys has demonstrated that much of the technology it sells has become less of a luxury and more of a household essential.”

“Consumers may delay upgrading a television, but when a washing machine or laptop packs up, or a mobile contract comes up for renewal, those purchases are much harder to put on hold,” she added.

“That resilience is reflected in [the] numbers, with group revenues climbing 6% to £9.25billion.

“Strong cash generation has given management the confidence to double the full-year dividend to 3p a share and launch another £50million share buyback.”

Mr Baldock is in the process of handing the firm over to Fredrik Tønnesen, with the appointment of the current Nordics division head not expected to trigger a share price fall.