In the company’s most recent earnings call, Xiaomi president Wang Xiang warned that Xiaomi phones might go up in price pretty soon.
The price hikes are due to chip shortage that first affected the automotive industry, then computer components.
Now, smartphone makers are also struggling, and they might be passing on the added costs to the consumer.
As of now, Xiaomi and its sub-brand Redmi corner a big part of the budget smartphones market but, if the chipset demand continues to rise without manufacturing capabilities also matching it, those budget devices might put a strain on your wallet.
“Qualcomm Inc, a key supplier to Xiaomi, is struggling to meet orders for major smartphone brands,” says Reuters, which is a major factor in increased costs.
Considering Qualcomm supplies chipsets to most smartphone makers, from Samsung to Oppo, and now plans to launch its own Nintendo Switch-like console, the chipset giant seems stretched pretty thin.