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As Chipflation Drives Up Prices, Consumers Turn to PC and Smartphone Subscriptions

From Dong-A Ilbo · () Korean

Translated from Korean and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Context piece
  • South Korean consumers are increasingly choosing subscriptions for electronics as semiconductor inflation raises PC and smartphone prices.
  • LG Electronics’ PC subscription contracts jumped 175% year on year in the first half of the year.
  • One user chose a monthly fee of less than 100,000 won for a new LG Gram laptop rather than pay more than 2 million won upfront.

A new LG Gram laptop would have cost office worker Choi Dong-hyun more than 2 million won upfront, so he began using one through LG Electronics’ subscription service in May for less than 100,000 won a month.

Choi said rising semiconductor prices had made PC purchases a significant burden, while the subscription allowed him to obtain the specifications he wanted. His choice reflects a broader shift in consumer habits as so-called chipflation, or semiconductor inflation driven by artificial intelligence demand, continues to lift prices for personal computers, smartphones and other electronics.

Rising semiconductor prices have also pushed up PC prices, making purchases a significant burden.

· Choi Dong-hyunA subscriber explained why he chose a monthly payment for an LG laptop.

LG Electronics’ PC subscription contracts rose 175% in the first half of the year compared with the same period last year, according to the electronics industry. The increase was attributed largely to consumers finding expensive computers harder to buy outright.

The trend is moving electronics consumption away from one-time purchases and toward monthly subscriptions.

I am satisfied that I was able to get the product with the specifications I wanted through a subscription.

· Choi Dong-hyunThe user described the benefit of subscribing instead of buying the laptop outright.
About this summary

Originally published by Dong-A Ilbo in Korean. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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