Xiaomi stated that the cost of her some smartphones could grow. This is reported by Reuters.
President Xiaomi Van Xiang (Wang Xiang) said during the report before the investors dedicated to the company’s report for the fourth quarter. Xiang noted that the Chinese corporation tries to reduce costs and keep prices at the attractive level: “We will continue to optimize the costs of our hardware devices, which is accurate.” However, the top manager of the corporation said that due to the deficit of components in the smartphone market, some products of the company will rise in price.
“Sometimes we may have to shift a part of the consumer spending,” said Wang Xiang. The head of the company did not specify, for smartphones of what price segments can grow prices.
Reuters analysts said that the crisis in the smartphone market is associated with many factors. In particular, the coronavirus pandemic, sanctions against key Chinese technological companies and the waiting for poor demand, have a negative impact on the supply chain of semiconductors. First of all, the lack of components concerned the automotive industry, but then the entire segments of the equipment built on the basis of processors touched.
“We feel the pressure, but everything is in order,” the van sat down, turning to investors. Following the quarter, Xiaomi announced the growth of revenue compared to the same period last year by 24.8 percent to 70.5 billion yuan (about $ 10.8 billion). The adjusted net profit of the company rose by 36.7 percent to 3.2 billion yuan.
Previously analysts predicted a global deficit in the smartphone market in 2021. The lack of new smartphones – in particular, Apple and Samsung – are associated with high demand in the semiconductor market.