West Asia conflict may push gadget prices higher

Bengaluru: Prices of mobile phones, laptops, tablets and desktops are likely to increase in the coming quarters amid an ongoing global shortage of memory chips and the escalating conflict in West Asia.

According to industry experts and company officials, while the global RAM shortage has persisted for some time, fears of disruption in the energy supply chain due to the West Asia conflict could further push up prices in the near term.

“Prices have risen. If you look at the last six months, prices have definitely gone up. They may rise again, though forecasting such trends precisely is difficult at this point,” Nipun Marya, CEO of iQOO, told BizzBuzz.

“On the memory side, it is a cause of concern for all manufacturers. It is a pan-industry challenge and we are part of it,” he added.

A sharp rise in demand from companies building artificial intelligence (AI) data centres has already led to a global shortage of RAM. The AI boom has significantly increased demand for LPDDR4 and LPDDR5 memory chips, which are widely used in smartphones.

With rapid growth in AI infrastructure, these chips are increasingly being deployed in data centres. Reports indicate that major technology companies such as Google, Amazon and Microsoft are paying a premium to secure supplies of such chips, resulting in shortages for smartphone manufacturers. As semiconductor fabrication units struggle to keep pace with the surge in demand, RAM prices have already risen, pushing up device costs.

Meanwhile, the ongoing conflict in West Asia could further aggravate the shortage. With global crude oil supply chains facing disruptions and the Strait of Hormuz witnessing heightened tensions, semiconductor production costs may increase further. Memory chip stocks globally have been under pressure since the escalation of the Iran–US conflict escalation. Shares of South Korean chipmakers such as SK Hynix and Samsung Electronics have been volatile.

Similarly, companies like SanDisk and Micron Technology saw corrections at the beginning of the conflict, though they have recovered somewhat in recent days.

Investors remain concerned that manufacturing costs for memory chip producers could rise further as global LNG prices climb. Major semiconductor manufacturers rely heavily on LNG to power their production facilities.

According to International Data Corporation, India’s PC market, including desktops, notebooks and workstations, recorded its strongest year in 2025, with shipments reaching 15.9 million units, up 10.2 per cent from the previous year. However, sustaining such growth may prove difficult this year if the West Asia conflict continues to disrupt supply chains and push up component costs.