Background: JB Hi-Fi has grown into one of Australia and New Zealand's biggest electronics retailers, selling everything from TVs and iPhones to gaming gear and laptops. The retailer now operates more than 200 stores with around 7,000 staff across both countries.

What happened: Despite a tough retail environment with inflation and supply chain issues, JB Hi-Fi still posted solid third-quarter growth. Its Australian sales, which generate roughly 75% of earnings, rose 4%, while New Zealand sales jumped 23.2%.    

What else: JB's CEO warned that shoppers might soon feel some pain. JB Hi-Fi says laptop prices have already risen around 30% in recent months, with more increases expected. And surprisingly, the pressure isn't coming from global conflict - it's coming from AI. Massive AI data centres are soaking up memory chips and computer components, leaving less supply available for everyday electronics.  

What's the key learning?

💡 Booms in demand can create second-order effects that spill into adjacent markets. Second-order effects are basically the unintended flow-on consequences of one industry's boom… landing in a completely different one.

💡 Right now, AI demand is impacting consumer tech prices. Data centres are soaking up memory chips and computer components, which leaves less supply available for products like laptops.

💡 We've seen this playbook before:

• The EV boom sent lithium prices up by around 1,400% between 2020 and 2022
• Higher lithium prices made other battery products more expensive

Now, the AI boom is creating similar supply pressure across electronics markets