Xiaomi warned the public about the possible price hike on its smartphones.
Xiaomi recently warned the public about the possible price hike on its smartphones because of the global chip shortage.
In a report on Gizguide, Xiaomi President Wang Xiang stated that the global chip shortage was increasing the company’s costs and so there might be a “price increase” soon.
The ongoing global chip shortage since last year had continued as mobile manufacturers continued to struggle with higher production costs and the shortage was caused by some factors and that included sanctions against key Chinese tech companies, COVID-19, and poor anticipation of demand.
According to Wang Xiang, Xiaomi had been grappling with increased production costs because of the shortage of semiconductors needed for smartphones and this could lead to higher selling prices of many upcoming devices.
However, Wang Xiang pointed out that Xiaomi will still offer competitive prices by finding ways in order to optimize its production processes.
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“We will continue to optimize the costs of our hardware devices, that’s for sure. To be honest, we will do our best to offer the best price we can to consumers. But sometimes, we may have to pass part of the cost increase to the consumer in different cases,” Wang Xiang said during the company’s Q4 earnings call.
Although Wang Xiang admitted that there’s pressure on their part, he assured the investors that Xiaomi was still doing okay.
Wang Xiang also shared that Xiaomi posted a 24.8% increase in revenue during the fourth quarter of 2020 and its adjusted net profit went up by 36.7%.
There were predictions that the present global chip shortage may persist until the end of this year and the inflation might heavily affect consumers.
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