Chinese tech company Xiaomi has revealed that its smartphones and TVs will become costlier starting today. According to the company, there could be an increase of 3-6% in the price of some of its devices that are selling in the country right now.
The company has blamed the short supply of components for the price hike. Additionally, thanks to lockdown and the new normal, the demand for smart TVs and phones have been on the higher side as well.
The company’s spokesperson said, “Due to massive demand-supply mismatch, the majority of components used in smartphones, Smart TV and other electronics gadgets (chipsets, display panels, display driver, back panels, battery etc) have seen constant upward movement in their prices.
“While we have tried to absorb the increasing costs, some of our products have witnessed a price hike. We also foresee an inevitable increase of 3-6% in prices of our smart TVs from July 1 onwards,” the spokesperson added.
Xiaomi isn’t the only one impacted
When it comes to raw materials, China and countries like Taiwan, Thailand, and Vietnam are the key suppliers of LED TV panels and chipsets. And the factories based in India are only responsible for assembling the products.
The pandemic led to a lockdown and the tension post-India-China border conflict has also resulted in the supply chain getting disrupted. The global chipset shortage as well has impacted a lot of companies. While brands try to absorb the price hike as much as they can, however, post a certain limit they’re forced to pass on the additional costs to the end customers.
Xiaomi and other brands have highlighted the increased logistics cost, including ocean freight charges and domestic transportation costs, apart from increased prices as the reason to increase costs by 3-4% starting this month.
Earlier, in April increased ocean freight and domestic logistics resulted in a slight price hike. Considering the current announcement, the Redmi Note 10 and Mi TV Horizon Edition 40-inch are at least Rs. 1000 costlier than their original launch price.
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