Xiaomi's vice-president warns of price hikes for its smartphones as the chip shortage reaches for their market

Xiaomi phones might get more expensive soon. (Source: Xiaomi)
Xiaomi phones might get more expensive soon. (Source: Xiaomi)
Xiaomi's vice-president, Wang Xiang, has reportedly intimated that the global chip-shortage may lead to increased starting prices for this OEM's mobile devices. The executive made comments to this general effect during the company's latest earnings conference call, which also reveals increased revenue and profits for the last quarter of 2020 (4Q2020).

Xiaomi's latest earnings call to its investors has revealed that the major consumer-device player made 70.5 billion yuan (or ~US$10.8 billion) in 4Q2020, or 24.8% more year-on-year (YoY); furthermore, its adjusted net profit was 3.2 billion (~$490 million), or 36.7p% YoY.

Despite these impressive figures, the company's VP Wang Xiang reportedly claimed that the ongoing chip shortage is eating into those profits, to the extent that the OEM might have to raise prices for its smartphones in the near future.

The executive is also quoted as saying the company would "continue to optimize the costs of our hardware devices" and would do its "best to offer the best price we can to consumers". However, Wang also conceded that potential customers was likely to be somewhat affected by the current SoC-supply crisis, as it starts to impact product categories like smartphones.

Qualcomm, a major source of mobile processors worldwide, is reportedly already having trouble supplying its clients with its constantly in-demand products. This is particularly bad news for Xiaomi, an OEM that is not only often looked to for cost-effective devices, but is also allegedly poised to diversify into new and premium categories, most notably foldables, soon. 

Buy the Xiaomi Redmi Note 9 Pro on Amazon


static version load dynamic
Loading Comments
Comment on this article
Please share our article, every link counts!
> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2021 03 > Xiaomi's vice-president warns of price hikes for its smartphones as the chip shortage reaches for their market
Deirdre O'Donnell, 2021-03-25 (Update: 2021-03-25)
Deirdre O'Donnell
Deirdre O'Donnell - Editor - 3607 articles published on Notebookcheck since 2018
I became a professional writer and editor shortly after graduation. My degrees are in biomedical sciences; however, they led to some experience in the biotech area, which convinced me of its potential to revolutionize our health, environment and lives in general. This developed into an all-consuming interest in more aspects of tech over time: I can never write enough on the latest electronics, gadgets and innovations. My other interests include imaging, astronomy, and streaming all the things. Oh, and coffee.