Xiaomi president states chip lack has increased expenses, might go on to buyers, Telecom Information, ET Telecom

SHANGHAI: Chinese smartphone maker Xiaomi Corp president Wang Xiang stated on Wednesday that the world wide chip shortage was increasing the company’s fees and implied that in some instances the rates of its goods could rise as a result.

“We will go on to improve the expenditures of our hardware devices, which is for positive,” he said all through the firm’s fourth quarter earnings simply call.

“To be genuine, we will do our finest to give the ideal value we can to buyers. But sometimes, we might have to move part of the charge improve to the shopper in different cases.”

A shortage in personal computer chips has rocked the electronics market due to the fact late final year, as elements these types of as COVID-19, sanctions against vital Chinese technology companies, and poor anticipation of demand from customers all converged to upend the semiconductor supply chain.

Though originally concentrated in the automotive industry, the lack has expanded to influence all styles of chips in a selection of hardware products, including smartphones.

Qualcomm Inc, a critical supplier to Xiaomi, is struggling to fulfill orders for main smartphone brands, Reuters noted earlier this month

“We are feeling pressure, but we are hunting all right,” Wang extra, talking to buyers.

The corporation claimed a year-on-yr earnings raise of 24.8% in the fourth quarter, hitting 70.5 billion yuan ($10.8 billion), although adjusted internet gain rose 36.7% to 3.2 billion yuan.