The scarcity of computer chips has been a major crisis for the electronics industry since last year
Global chip shortage is causing an increase in Chinese smartphone manufacturer Xiaomi’s costs, which could, in turn, lead to a rise in the price of their products, the company’s CEO Wang Xiang said during its fourth-quarter earnings call.
Xiang was heard saying, “To be honest, we will do our best to offer the best price we can to consumers. But sometimes, we may have to pass part of the cost increase to the consumer in different cases.”
Global chip scarcity matter of concern
The scarcity of computer chips has been a major crisis for the electronics industry since last year. Factors like COVID-led disruptions, geopolitical issues hampering the business of major Chinese technology companies, and a poor forecast of demand have all led the semiconductor supply chain to backtrack.
Chip shortage, initially contained within the automotive industry has now extended to other hardware sectors as well, smartphones being one of them. Companies like Qualcomm Inc. have been hard-hit by the shortage.
“We will continue to optimize the costs of our hardware devices, that’s for sure,” Xiang said.
