Xiaomi’s President Wang Xiang declared a possible smartphone price hike because of the current chip shortage. Manufacturers raise prices as this chip shortage started and high demand arises. One of the reasons for this shortage is the pandemic because a lot of mining companies stop their operations. And this chip shortage affects the production of computer parts, PlayStation 5, smartphones, and many more.
This Wednesday, Wang Xiang said that this global chip shortage resulted in the company’s costs increased. By that, its upcoming products may have higher prices. However, he said that they will continue to optimize the cost of their devices and continue to give the best prices to their consumers.
“But sometimes, we may have to pass part of the cost increase to the consumer in different cases.” He added.
He also said to their investors that they feel pressure and assured them that they are okay. As the company has a 24.8% increase in the fourth quarter last year, hitting CNY 70.5 billion (around PHP 523.02 billion). At the same time, its net profit goes up to 36.7%.
Lastly, other smartphone brands will might also have this price hike because they have the same chip suppliers. We hope that this year this shortage ends because if we notice, some brands used an older chipset to their smartphone.