Xiaomi smartphones may rise in price due to the lack of chips

The Chinese company Xiaomi usually offers smartphones and other gadgets that are much cheaper than many

competitors. But it looks like the situation may change this year.

What happened

As Xiaomi Wang Xiang stated duringthe company's fourth quarter income statement, some smartphones may rise in price this year. And the reason for this is the protracted crisis of the semiconductor industry.

Since last year due to the pandemic and increaseddemand due to the transition to distance learning and remote work, there is a shortage of chips. First of all, this hit the gaming industry, but the mobile direction also suffered. What's more, even car makers like Hyundai expect them to suffer from the chip supply shortage.

Qualcomm, Xiaomi's key supplier, is strugglingtrying to satisfy orders from major smartphone brands. But the shortage of chips increases the costs of companies, so it is possible that this will affect the price tags.

“We will continue to optimize the costs of ourhardware devices. We will do our best to offer consumers the best price we can. But we may have to pass on some of the cost increase to the consumer, ”Wang Xiang emphasized.