Xiaomi and Realme warn: "Prices on the rise due to the pandemic"

xiaomi realme logo

It was already in the air a increase in the price of smartphones, even if manufacturers like Xiaomi and Realme try to do everything to achieve the opposite. The birth of a branch like Redmi e POCO its goal is to offer consumers competitive devices but at prices as low as possible. A will that unfortunately collides with the harsh reality that are the limits that the technology industry has been facing since the pandemic. Qualcomm itself, a giant in the world of chipmaking, he put his hands on, stating that they may not be there chipset for everyone.

Upgrade 02 / 04: after days, Realme also joins the warning launched by the Xiaomi management. Find all the details at the end of the article.

The lack of chipsets will impact the cost of Xiaomi smartphones

Talking about what is increasingly becoming a problem that cannot be overlooked is the same Wang Xiang, president of Xiaomi. As the law of the market teaches us, the price is also regulated by the balance between supply and demand. On the one hand we have companies such as Xiaomi, OPPO, Realme, vivo and so on, eager to recover from the economic meltdown of 2020 by producing more and more smartphones. On the other hand we have Qualcomm, but also MediaTek and of course physical manufacturers like TSMC, who can't keep up with this huge demand. It follows that not only is there a shortage of SoCs, but that production and sales should suffer from a rise in prices.

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During the last day, here is what was stated by the president Xiaomi:

"We will continue to optimize the costs of our hardware devices, that's for sure. To be honest, we will do our best to offer consumers the best possible price. But at times, we may have to pass on some of the increased costs to the consumer in different cases. "

It is still early to speak concretely, but it is clear that if Wang Xiang himself has taken a bias in this direction, the increases could really happen. Unfortunately, the situation is not the most optimistic and the scarcity of raw materials, labor and components has affected various sectors. Starting from the automotive one, but also of PC components (graphics cards in the first place) and the tech hardware market in general, including smartphones.

Realme also joins Xiaomi | Update 02/04

A few days ago it was presented Realm GT Neo, yet another smartphone that tries to lower the threshold of the quality / price ratio. For only € 233 (in China) it offers a 120 Hz AMOLED, a fairly powerful SoC like MediaTek's Dimensity 1200 with 5G and a 4.500 mAh chargeable at 50W. Together with Xiaomi e Redmi, Realme is undoubtedly one of the producers trying to raise the bar in terms of convenience.

realme xuqi

But 2021 will be the year of the countertrend of economy, to the point of forcing these companies to get their hands on what will happen. After Xiaomi and Redmi, also the management of Realme he did, with Vice President Xu Qi claiming that from the second half of 2021, prices could increase. And the reasons are the same: the lack of raw material, including SoCs, batteries and electronic components in general. Also for this reason, Realme has started the so-called Dual Flagship Strategy, in order to stratify the proposal to satisfy all portfolios.

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