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The Reason Xiaomi Could Increase Its Smartphone Prices


Thanks to the global chip supply shortage, it’s hard to get your hands on some new electronic devices. The most slippery devices are new consoles, the Xbox Series X/S and PS5, and new NVIDIA GPUs.

But due to the chip supply shortage, the cost of creating new smartphones is increasing as well. Xiaomi president Wang Xiang talked of the rising costs of producing smartphones, which may increase the price of the company’s devices.

“We will continue to optimize the costs of our hardware devices, that’s for sure,” he said during an earning’s call(via Reuters). “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.”

So brace yourselves, folks. Your favourite value devices from Xiaomi might not be launched at a lower price as you anticipate in the future, or at least as long as the global chip supply strain lives.

“We are feeling the pressure, but we are looking okay,” Wang added.

Qualcomm, the major chip manufacturer for most smartphone companies, struggles to keep up with the demand.

Even Samsung, which makes its chips, has also warned of the staggering imbalance between supply and demand currently in play. Samsung’s co-chief executive, Koh Dong-jin, who also heads the company’s mobile business warned of the serious imbalance in the market.

Global Chip Shortage

Many industries have been hit by the semiconductor shortage, including the car industry. The widespread shortage means that different consumer products, like TVs,  will ultimately increase because chips are everything.

Last week a report from The Guardian said the global chip supply shortage is reaching a crisis point.

“There is a perfect storm of supply and demand factors going on here. But basically, there is a new level of demand that can’t be kept up with, everyone is in crisis and it is getting worse,” Neil Campling, Mirabaud media and tech analyst, said.

Due to the crisis, the most immediately affected users have been gamers. Gamers are feeling the pinch, the price of even old GPUs has risen massively, and new ones are harder to secure, and if it’s possible, the prices are out of reach.

Gaming consoles are not cheap as well. The Xbox Series X/S are selling way more on the market relative to the MSRP. The situation is even worse with the PS5.

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Alvin Wanjala

Alvin is a freelance tech journalist. Talk to me via email at alvinwanjala[at]pm[dot]me

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