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Dear Residents +62, Get Ready for Smartphone Prices Rise This Year

Jakarta, CNBC Indonesia – Price of a smartphone (smartphone) might just go up in the near future. This occurs due to the current lack of global chip supply.

At least this was said by the President of Xiaomi Corp Wang Xiang. The increase may occur even if the company tries to optimize costs hardware.


“To be honest we will do our best to offer the best price that we can give to consumers. But sometimes, we may have to pass a part of the cost increase to the consumer in different cases,” he was quoted as saying. Reuters, Saturday (27/3/2021).

Chip supply shortage occurred at the end of last year. Some experts even call this because it resulted in the chip or chipageddon apocalypse.

This case originally started from the Covid-19 pandemic. At that time, many factories in China closed operations because of this lockdown or territorial quarantine. The problem is that during the pandemic, many people are trapped at home and the need for electronic devices increases rapidly.

This has depleted chip stock in many manufacturers’ warehouses. Meanwhile, there are also companies that create chips for their own products. This makes chip supply tighten amid high demand. Then there were the problems in back chip production. Policy

Donald Trump, who banned selling US technology to Chinese companies, hurts SMIC, one of the world’s largest chip makers, because it is difficult to produce chips because semiconductors use US technology.

Initially the case of chip shortages was concentrated in the automotive industry, now the problem has spread to affect all types of chips in several hardware products including smartphones.

Qualcomm Inc, one of the chip suppliers said it was struggling to fulfill all orders from various major smartphone brands.

“We felt pressure, but we looked fine,” said Wang Xiang.

The company reported an annual revenue (yoy) increase of 24.8% in the fourth quarter, reaching 70.5 billion yuan (US $ 10.8 billion), while adjusted net profit rose 36.7% to 3.2 billion yuan.

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