- Samsung and LG report higher raw material spending in 2025 filings.
- Samsung raw material purchases rise 8.8% to 99.94 trillion won.
- LG Electronics reports 5.6% increase in raw material costs.
- Analysts warn Middle East conflict may raise logistics costs further.
The two biggest manufacturer of consumer electronics in South Korea started the year 2025 by paying much more on raw materials than it had paid during the comparable period the previous year as regulatory filings indicated on Sunday as the pressure of inflation took a lot of toll on the cost and revenues of the two firms operating there already having a challenging environment to operate. According to industry observers, this US-Iran war and the resulting blockage of world shipping routes, will lead to an even increase in those costs in 2026.
According to the regulatory filing of Samsung Electronics, the company has in 2025, 99.94 trillion won in purchases of raw materials, which is an increase on 8.8 percent, or 8 trillion won, compared to a previous year. The figures will not include wholly owned subsidiary Samsung Display.
The most significant increase was by Samsung Device Experience that encompasses its mobile and television divisions, which saw its raw material spend of that segment of the business increase by close to 7 trillion won per annum to 74.5 trillion won.
LG Electronics also reported 17.4 trillion won as the raw material spend on 2025 which is a growth of 5.6 percent compared to the previous year. The current conflict emerged only after both companies had already been digesting increased cost of memory chips induced by the artificial intelligence sector that was growing in demand.
War Compounding Already Existing Pressure
Workers in the industry predicted that the conflict in the Middle East is already overlaying cost pressures already found from oil volatility and logistical disruption on top of the underlying cost pressures. The crisis at Strait of Hormuz has increased freight rates across the world as well as uncertainty in terms of component delivery schedules to manufacturers depending on the Gulf shipping routes.
There has been a reaction by techmakers to speed up efforts on improving processes using AI and enhance procurement planning, but analysts note that the cost benefits of efficiency will not fully compensate the effects of permanent high-cost oil prices on the global logistical network.
Samsung continues to win Soundbar Crown in 12th year.
Amid the macroeconomic strains, another milestone was announced on Sunday by Samsung Electronics: the company was the market leader in the world in terms of soundbar sales by revenue, with 21.7 per cent of the global market share, according to statistics prepared by market monitor Future Source.
The company attributes the continued domination to features such as its Q- Symphony that enables it to play audio at the same time using soundbars and TV speakers, and its close connection with the Samsung TV ecology.
Also Read: Iran Threatens US-Linked Oil Assets, Says Hormuz Open Only to Non-Enemies
The soundbar outcome provides Samsung with a rarity of some good news since it manages to balance its difficult 2026 prognosis. With the oil prices in the world market topping over 100 a barrel, as well as, the shipping rates which are still on the rise following the Hormuz disturbances, the component procurement cost of the company is likely to rise even more before the pressure of the supply chain may start to diminish.
