South Korea records record rise in computer prices

Computer prices in South Korea rose 27.4% year on year amid a sharp rise in semiconductor prices, while prices for durable goods in general showed a record increase since November 2009, Newsis reported, citing government statistics.

Durable goods prices rose 4.9% in September compared with the same month last year, according to the Korea Statistics and Information Service (KOSIS). This is the maximum increase in 16 years and 10 months since November 2009, when the figure was 5%.

“The cost of computers increased by 27.4% year-on-year, with the growth rate accelerating by 3.7 percentage points compared to August (23.7%). Tablets and data storage devices rose in price by 22.5% and 45.9%, respectively,” the agency writes.

The cost of mobile phones in September increased by 8.3% in annual terms compared to 4.3% in August. Analysts attribute the acceleration in price growth to the release of new smartphone models, in the price of which manufacturers have begun to include more expensive components.

Manufacturer prices for DRAM jumped 476.1% year-on-year in August and flash memory prices jumped 250.6% year-on-year, according to Bank of Korea data. Against this background, manufacturer prices for desktop computers increased by 36.2%, laptops by 41.6%, and computer storage devices by 325.1%.

As the agency notes, the price increase is associated with increased investment in data centers for artificial intelligence, which leads to increased demand for semiconductors and a shortage of memory chips. Experts admit that the memory shortage may persist until 2030.