Xiaomi has increased the prices of its budget smartphones and best smart TVs in India by about three to six percent, said to be related to the global semiconductor shortage and higher shipping charges. The price hike kicked in from Wednesday, June 30. A Xiaomi spokesperson told LiveMint in a statement that since last year, there have been shortages across the supply chain. “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,” the spokesperson told the publication.
The LiveMint report says that other players in the LED television space are also estimated to have hiked by about 3 percent to four percent this month as the cost of panels have gone up in the global market. This, besides an increase in logistics expenses. In April as well, prices had been hiked due to a rise in operation cost on account of increased ocean freight charges, and domestic transportation costs. The TV market is expected to grow to 284 lakh units in 2024-25 from 173 lakh units in 2018-2019.
In February this year, Xiaomi had announced its partnership with contract manufacturers BYD, DBG, and Radiant to strengthen its Make in India efforts. The company had tied up with BYD and DBG for smartphones while the partnership with Radiant was aimed at augmenting Xiaomi’s capacity of smart TVs in India.