Xiaomi prices for phones could increase due to global chip shortage
- During a call for profits, Xiaomi President Wang Xiang said that Xiaomi prices could rise soon.
- The possible price increases would be a direct consequence of the ongoing global chip shortage.
- Xiaomi didn’t say when this could happen, but the idea is officially on the table.
Thanks to countless factors, there is currently a global chip shortage. The shortage affects all industries, including smartphones, computers, gaming systems, and even automobiles. This is one of the many reasons it’s so difficult to get a PlayStation 5, Xbox Series X / S, or a new Nvidia GPU.
Unfortunately, due to this lack, some smartphone prices seem to be increasing. On a call to discuss his company’s fourth quarter results (via Reuters), Xiaomi President Wang Xiang suggested it. While he didn’t directly say that Xiaomi prices would definitely go up, the idea is absolutely on the table.
Connected: Xiaomi Buying Guide: All You Need To Know
“We’ll keep optimizing the cost of our hardware devices, that’s for sure,” he said. “To be honest, we’ll do our best to offer consumers the best possible price. But sometimes, in different cases, we have to pass some of the cost increase on to the consumer. “
Due to the global shortage, the cost of creating smartphones is increasing. Xiaomi can cover some of these costs to avoid having to increase consumer prices to compensate. There are obvious limits to how much Xiaomi can do this, however, especially when you consider that the company’s hardware profit margins are already razor thin.
what does that mean to you? Unfortunately, it means that an upcoming Xiaomi phone that you expected to land at a certain price could end up at a higher price than you might have hoped. How much higher Xiaomi prices could rise and how long these increases could last is currently unclear.
In the meantime, the two newest Poco phones (a Xiaomi daughter) ended up at very reasonable costs.
