Xiaomi may pass on high costs to consumers due to chip shortage

Xiaomi may be one of the most prolific phone makers today, launching new phones left and right, you’d think it’s not affected by the global chip shortage issue. A company executive has just made a statement that because of the problem, the cost may be passed on to consumers. And that’s what is going to happen to most phones yet to be announced so expect more expensive phones to enter the market. By expensive we mean slightly more costly than the affordable entries but still not as high-priced as the premium flagships.

Xiaomi president Wang Xiang shared the fact that costs of the company are increasing. It’s not definite but the prices of the Xiaomi products may also increase. Xiaomi will still try its best to optimize costs but don’t be surprised if there will a jump.

Xiang said, “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.”

The electronics market is being rattled by the shortage of chips these days. This happened before 2020 ended, no thanks to the sanctions being imposed against most Chinese tech companies. There is also a high demand now for these chips especially since more people are buying mobile devices and computers as a result of the pandemic. For one, Qualcomm is reportedly unable to meet demand for processors.

Wang said in an event, “We are feeling pressure, but we are looking okay.” That means a lot of things but we’re crossing our fingers Xiaomi and other OEMs will be able to find solutions.