Fix! Xiaomi Raises Redmi And Poco Smartphone Prices

JAKARTA – Chipmageddon or the name for the current chip crisis has an impact on a number of industries including the well-known smartphone manufacturer from China, Xiaomi. Recently, Xiaomi announced that it was forced to increase the price of its flagship smartphones which include Redmi and Poco.

The announcement regarding the price increase was delivered by Xiaomi through its official Instagram account @xiaomi.indonesia. The mobile phone company from the Bamboo Curtain country revealed that there were four smart phones that underwent price adjustments.

"As a result of this, several of our products were also affected, so with a heavy heart, we had to adjust the price of Rp. 100,000 for our four smartphone products," said Xiaomi in its official announcement in an Instagram post on Monday, October 11, 2021.

A number of smartphones that experienced price increases include the Redmi 9A, Redmi 9C, Redmi Note 10 5G, and Poco M3 Pro 5G. Here are the latest prices for Xiaomi Redmi and Poco smartphones in Indonesia:

For information, the latest price adjustments for a number of Xiaomi smartphones mentioned above took effect on October 12, 2021 yesterday. Xiaomi online store mi.com and e-commerce have also adjusted the prices for the latest Redmi and Poco models.

Causes of Xiaomi Smartphone Prices to Rise

Xiaomi itself claims that it only takes a margin from product sales of 5 percent. Thus, the Chinese mobile phone manufacturer is able to price its products still affordable by consumers.

However, due to the chip crisis that hit the world today, Xiaomi has experienced difficulties in smartphone production and has been forced to increase the price of its products. Even so, the increase in the price of Xiaomi smartphones is not so high and can still be reached by the lower middle class.

The chip crisis is predicted to end in the second quarter of 2022. Conditions will return to normal the following year. On the other hand, the smartphone market is expected to experience changes in the next year. This is due to the increase in smartphone prices and limited production due to the global chip crisis.

The largest chipset company, Taiwan Semiconductor Manufacturing Co (TSMC), whose clients are world technology giants such as Apple, MediaTek, and Qualcomm, plans to increase the price of its chips.

The research agency Counterpoint Research noted that the shortage of chipsets would make vendors prioritize smartphones with high selling prices over entry-level and middle class smartphones.