Xiaomi has hinted that it will increase smartphone prices, due to the increasingly severe shortage of processor chips

Due to many reasons, the global shortage of semiconductors is becoming more and more serious. This shortage affects all industries, including smartphones, computers, consoles and even cars. That is also the reason that currently buying PlayStation 5 or VGA from Nvidia is facing many difficulties, the selling price is also increasing.

Now, a shortage of processor chips can cause smartphone prices to soar as well. During the recent meeting with shareholders, Chairman Wang Xiang implicitly hinted that Xiaomi is being affected by a shortage of chips and that the smartphone price may increase. Although Mr. Wang is not firmly affirmed, it is likely that it will happen.

“We will continue to optimize the production costs of hardware devices,” said Chairman Wang . Honestly, we did our best to bring the best prices possible to consumers. But sometimes, we will have to pass on a portion of the incremental cost to consumers, in special cases.

The global shortage of chips could be one of those special cases, driving up the cost of making smartphones. Xiaomi will likely bear this increased cost on its own, to help users continue to buy smartphones at affordable prices.

However, there are limitations that Xiaomi can bear, especially considering that the profit margin per smartphone sold by Xiaomi is much lower than that of other competitors, such as Apple or Samsung.

That means in the near future, Xiaomi may increase the selling prices of its products. How much price increases and for how long is not known, it depends on whether the global chip shortage is resolved or becomes more serious again. than.

Reference: androidauthority