Impact of Iran Conflict on Consumer Electronics Prices
Rep. Pat Fallon (R-Texas) recently commended Secretary of the Army Hegseth and Chairman of the Joint Chiefs of Staff Dan Kaine for their work in Congress during a segment on “Evening Edit.”
As tensions rise due to the conflict in Iran, American consumers may soon see changes in the prices of smartphones, laptops, and even home appliances—not just at the gas station but also at checkout counters.
The cost of printed circuit boards (PCBs), essential for electronics, is climbing, leading to potential price increases and reduced availability for consumers in the near future.
Goldman Sachs reports that PCB prices surged by 40% in April, with materials like copper foil—one of the most costly components—also seeing a 30% rise this year.
The ongoing war has disrupted supplies of crucial raw materials for making PCBs, which function as the “nervous systems” in virtually all electronic devices, including smartphones, computers, and vehicles.
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The turmoil follows Iran’s attack on Saudi Arabia’s Jubail petrochemical complex early in April, disrupting production of a vital resin used in circuit boards and creating global supply constraints. Additionally, transportation routes in the Gulf have faced interruptions, further aggravating delays and shortages.
Manufacturers are now racing to secure raw materials, with some chemicals having delivery timelines ranging from three weeks to as much as 15 weeks. This strain permeates the entire technology supply chain.
“It’s not just PCBs,” stated Ben Bajarin, CEO of Creative Strategies. “Costs for memory, storage, and wafers are all climbing, affecting the overall expense of device production.”
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While companies are attempting to mitigate these cost increases by negotiating supply contracts and absorbing some expenses, they can only do so for a limited time.
Experts suggest that while consumers may not notice immediate price increases, hikes are inevitable.
“For the average shopper at Best Buy or Amazon, adjustments won’t happen overnight,” explained Galen Zeng, a semiconductor supply chain analyst at IDC. “However, we predict these changes will emerge in the coming months.”
According to Wedbush Securities analyst Dan Ives, the full impact of these issues is likely to become apparent later in the year.
“Delays will be common, and many of the costs will be absorbed within the supply chain,” Ives noted. “Price increases might coincide with significant retail periods, like back-to-school or the early holiday shopping season.”
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While companies usually absorb some cost implications in their profit margins, the Institute for Supply Management’s data indicates that ultimately, some of these increases trickle down to consumers.
Some analysts argue that although businesses might take on costs in the short term, the potential for ongoing price hikes exists.
“This isn’t just a short-lived spike; it represents a structural, multi-year trend driven by AI demand,” said Zeng. “The cost baseline for advanced electronics is on an upward trajectory.”
In fact, the growing need for AI infrastructure competes with consumer electronics for a limited supply of critical components, leading to shortages and escalating prices overall. Even before the Middle East conflict, demand for PCBs was rapidly increasing due to the expansion of AI servers.
Consequently, consumers might also face restricted access to certain devices.
“Manufacturers of consumer electronics are set to compete for dwindling supplies as resources are directed toward AI and high-performance computing,” Zeng pointed out.
As a result, certain products could see delays or even become “out-of-stock,” especially if supply challenges persist.
Ives acknowledged that while a shortage isn’t guaranteed, it’s still a risk.
“If this pace continues, shortages of specific products could extend into the fall,” he cautioned.
Historically, disruptions in supply chains don’t always translate into corresponding retail price increases, but it seems unlikely that the effects will disappear entirely.
This means that consumers are not likely to escape the repercussions.
With the disruption occurring far along the supply chains, its impact is bound to be felt closer to home—with rising prices on everyday tech products, fewer discounts, and tighter inventories.
And, as demand for electronics keeps soaring, relief may not arrive anytime soon.
