"Laptop at 3.14 Million Won, Smartphone at 2.54 Million Won... 'War Butterfly Effect' Drives Prices Up [U.S.-Iran War]"

[Report] Electronics Market Merchants Sigh in Frustration

Back-to-School Season Drives High Demand for Smartphones and Laptops

IT Device Prices Continue to Soar

"Rising Tensions in the Middle East Amplify Market Uncertainty"

"Customers are having a hard time. The price quotes from a week or ten days ago are different, and sometimes the price even changes between morning and afternoon on the same day..."

At 4 p.m. on March 3rd, on the first floor of Seonin Shopping Mall in Yongsan-gu, Seoul, the electronics mall should have been bustling with the busy season surrounding the start of the new school year. However, it was difficult to find anyone walking around to check out products inside the mall. Shin Myungcheol (male, 59), the owner of a used laptop store, lamented, "Memory prices have gone up so much that the cost price may now exceed the selling price," adding, "Even though it's the start of the new semester, there are no customers. Moreover, logistics costs are likely to be affected by the aftermath of the war in the Middle East."

On the 3rd, an employee was pulling a box at Seonin Shopping Mall in Yongsan-gu, Seoul. The corridor was quiet as there were no customers visiting Seonin Shopping Mall to buy electronic devices such as laptops. Photo by Eunseo Lee

Although the new school semester usually brings high demand for smartphones and laptops, shop owners at the Yongsan electronics market are sighing in frustration. The so-called 'chipflation' caused by memory shortages continues, and now, with disruptions to the supply chain due to U.S. and Israeli airstrikes on Iran, concerns are growing that prices for IT devices could skyrocket.

Counterpoint Research, a market research firm, warned in a report, "The rising tensions between the United States, Israel, and Iran are escalating geopolitical risks and increasing uncertainty in global markets," adding, "These tensions are likely to become more complex and prolonged. This could affect airline routes, operating costs, and inventory planning across the global smartphone market."

The Middle East serves as a 'hub' for air logistics of smartphones. However, due to the current war, oil prices have risen, and if companies choose alternative routes instead of flying through the Middle East, they must contend with increased logistics costs. Counterpoint Research analyzed that using alternative routes instead of the Middle East for smartphone shipments results in at least 2 to 3 additional hours of flight time and adds $25,000 (about 36.99 million won) in fuel costs. In addition, the report stated, "Although air freight is more expensive than sea freight, smartphones are high-value products with short product cycles, so air transport is preferred. Rising transportation costs will put further pressure on an already strained supply chain."

IT Device Prices Soared Even Before the War... Concerns Over Prolonged Conflict

Donald Trump, President of the United States Yonhap News

Even before the war between the United States, Israel, and Iran, IT device prices had already risen significantly. The average spot price for DDR4 8G (1Gx8) 3200 memory for PCs was $29.5, up about 15% compared to the weekly average of $13.1 at the end of last year, reflecting chipflation caused by memory bottlenecks. The factory price for Samsung Electronics' new Galaxy S26 Ultra 1TB smartphone rose to 2,545,400 won, a 19.6% increase from the previous model (2,127,400 won). The price of LG Electronics' new laptop, the 'Gram Pro AI 2026' 16-inch model, also rose to around 3.14 million won, up approximately 19% from the previous model (about 2.6 million won).

The problem is that the war could be prolonged. On March 2nd (local time), President Donald Trump, while awarding the Medal of Honor to war veterans at the White House in Washington, D.C., said, "It doesn't matter how long (the war with Iran) takes," adding, "I expected it to take 4 to 5 weeks, but we have the ability to last even longer." Furthermore, in an interview with the New York Post, President Trump hinted at the possible deployment of ground troops, stating, "Unlike other presidents who said there would be no ground forces, I have no phobia about deploying them."

Small business owners selling IT devices expressed concern over rising prices and declining demand. Market research firm IDC predicts that global smartphone shipments will decrease by 12.9% this year compared to the previous year. Kim, a 48-year-old male owner of a PC shop at Seonin Shopping Mall in Yongsan, said, "Just the memory for one PC now costs 1.7 million won," adding, "The price has increased nearly fivefold, so companies are hesitant to place orders." Another owner of a laptop store, a 50-year-old male identified as Mr. A, said, "Even when customers come in, they say they'll wait for prices to drop further before buying and end up leaving. With a shortage of parts and increased logistics and fuel costs due to the war, it seems unlikely that prices will go down anytime soon."

This content was produced with the assistance of AI translation services.