Xiaomi, in its latest earnings call, has revealed that it may increase the prices of some of its products due to particular circumstances. These are majorly the computer chip shortages, where the suppliers cannot meet the demand. And since this increases the need for available chips, the increased costs may eventually be supplied to users.
Xiaomi Products May Increase in Price
The community has long applauded Xiaomi for its value pricing. The Chinese OEM has created waves with its predatory pricing, taking over market leaders by providing devices at affordable prices. While this catered many consumers to the brand, it may change now!
Reuters reported that Xiaomi reported chip shortages in its latest earnings call, which could eventually affect its hardware products’ prices. This includes the computer chips, which power gaming consoles like PlayStation and Xbox. These could be used in several Xiaomi products.
The shortages are actually caused due to various reasons but especially driven by last year’s COVID-19 pandemic. This led to the shutdown of operations in many countries, including Qualcomm’s in China, where it makes the chips necessary for powering smartphones and tablets for most OEMs.
This has also disrupted the supply chain, and the continued sanctions against China by the previous US government have also laid a major impact. All these sum up to limit the resources that OEMs can use. And since the demand persists, OEMs, including Xiaomi, may pass this onto consumers to stay afloat.
Xiaomi’s president, Wang Xiang said “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.”