Xiaomi President says chip shortage impacting costs

The global chip shortage is rising accounts for Xiaomi, the company’s President has said.

Xiaomi President, Mr. Wang Xiang, said that global chip storage was increasing rapidly for Xiaomi. Also, he said that sometimes the prices of its products might increase as a result. He also insisted that significant issues, including COVID-19, cause this to have happened.

The global spread of COVID-19 stops the economic activity and everything since it appears in Wuhan, China, last year. As a result of this, the prices become high, and there is a massive demand for products. This is because most of the cities are in lockdown due to the overcount of COVID-19 cases.

Xiaomi President reveals the truth

The President of Xiaomi, the one kind of best-selling smartphone company, Mr. Wang Xiang, said that he would extend to optimize his hardware devices’ prices, which was sure during the company’s fourth-quarter earnings call. He also added that he would do his best to make products and offer the best price to consumers. However, we may have to pass part of the cost increase sometimes to the consumer in different cases, he said.

A shortage of computer chips has shaken the electronics industry since late last year. The reasons are COVID-19 spread worldwide, consents against key Chinese technology companies, and poor fixation of demand all gathered to upend the semiconductor supply chain.

The shortage has grown to affect all types of chips in various hardware electronic products, such as smartphones. These are based on details collected in the former examination that occurred in the automotive industry.

Working on the recovery

This month, Reuters reported that Qualcomm Inc, a key supplier to Xiaomi, strives to satisfy requests for better smartphone brands. Wang, while speaking to investors, he said that he feels the pressure. However, they are looking okay.

Top companies like Apple, AMD, Sony, and Qualcomm have elevated anxiety over chip shortages. It includes parts for iPhones and consoles like the PlayStation 5. Due to the COVID-19 outburst, manufacturing shortages have been reported in the auto and tech industries.

The company summarised a year-on-year income rise of 24.8% in the fourth quarter, running 70.5 billion yuan ($10.8 billion). While adjusting the net profit, it improved by 36.7% to 3.2 billion yuan. In India, According to Canalys, Xiaomi ranked No 1 for the 13th consecutive quarter in the fourth quarter of 2020. The ranking is applied in terms of smartphone shipments, with a market share of 27.4 percent.

Image courtesy of Athena/Pexels

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