Technology prices could rise as the Iran conflict disrupts the electricity supply chain
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Americans buying smartphones, laptops or home appliances may soon begin to feel the effects of the Iran conflict — not just at the gas pump, but at the checkout screen.
Disruption of a key component in electronics – printed circuit boards (PCBs) – is driving up costs across the technology industry, increasing the likelihood that consumers will face higher prices and fewer deals in the coming months.
Circuit board prices are already on the rise, jumping as much as 40% in April alone, according to Goldman Sachs. At the same time, other key inputs such as copper foil – one of the biggest cost components in PCBs – have increased by as much as 30% this year.
The ongoing war with Iran has disrupted the supply of key raw materials used to produce PCBs, which act as the “sensor system” inside nearly every electronic device, from smartphones and computers to cars and AI servers.
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An engineer checks the quality of the electronic control unit (ECU) steering control chips at a workshop on March 5, 2026. (Lyu Bin/VCG via Getty Images)
At the center of the disruption is an Iranian strike on Saudi Arabia's Jubail petrochemical complex in early April, which halted production of a key resin used in circuit boards and tightened global supplies, according to analysts. Shipping routes in and out of the Gulf have also been disrupted, including delays and shortages.
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Manufacturers are now pursuing materials, with lead times for some chemicals ranging from just three weeks to 15 weeks, according to industry sources. The pressure is reduced with a wider supply chain of technology.
“It's not just PCBs,” says Ben Bajarin, CEO of Creative Strategies. “Memory, storage and wafer costs all increase the bill of materials for devices.”
Buildings left in ruins from an Israeli/US airstrike on April 4, 2026, south of Tehran, Iran. (Majid Saeedi/Getty Images)
Companies are trying to offset that increase by negotiating supply contracts and recovering some of the costs – but only to a point.
Experts say consumers won't see price increases immediately, but they are coming.
“For a typical consumer shopping at Best Buy or Amazon, the pass-through won't happen overnight,” said Galen Zeng, a semiconductor supply chain analyst at IDC. “But expect it to happen in the next few months.”
Circuit board prices are already on the rise, jumping as much as 40% in April alone, according to Goldman Sachs. (Stock)
Dan Ives, an analyst at Wedbush Securities, said the impact will likely be more visible later this year.
“There will be a slowdown and a lot of these costs will go into the market,” Ives said. “The summer and fall season can see prices go up.”
That period can coincide with key sales periods, including back-to-school shopping and the early holiday shopping season, when demand for electronics tends to be brisk.
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Data from the Institute for Supply Management suggests that companies typically pass on at least half of the cost increases to customers, even if they experience some impact on margins, according to ISM Manufacturing PMI Chair Susan Spence.
While some analysts believe companies will hold costs in the short term, others warn that price increases could stick.
“This is a structural, multi-year rise driven by AI demand — not a temporary spike,” Zeng said. “The cost of advanced electronics is rising.”
The AMD AI chip was shown at an exhibition in Hangzhou, Zhejiang province, China. (CFOTO/Future Publishing via Getty Images)
Demand for AI infrastructure is already competing with consumer electronics for limited supply of key components, squeezing availability and driving up prices across the board. Even before the Middle East conflict, PCB demand was rising rapidly due to the growth of the AI server, which further tightened the supply.
Beyond the high prices, consumers may face limited availability of certain devices.
“As goods are redirected to AI and efficient computing, consumer electronics manufacturers are left competing with a shrinking pool,” Zeng said.
The result can be delays or “out of stock” issues for some products, especially if supply disruptions continue.
Ives said the shortage is not guaranteed but remains a risk.
“If it stays at this level, we can see a shortage of certain products,” he said.
Historically, supply chain shocks do not translate into one-to-one price increases, but they rarely disappear entirely.
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That suggests consumers are unlikely to escape the impact entirely.
The disruption may start deep in the global supply chain, but its effects can be seen in the usual places: higher price tags, fewer discounts and tighter supplies of everyday tech products.
And as demand for electronics continues to surge, relief may not come quickly.
Reuters contributed to this report.
