Xiaomi Increases Price Of Smart Televisions By 3-6%: Here's Why

Xiaomi has increased the retail prices of smart televisions due to cost pressure, shortage of components, and shipping charges. Besides, the smartphone maker has increased the prices of the Redmi Note smartphone. The company has increased the prices of two variants by Rs. 500.

"We have tried to absorb the increasing costs, some of our products, including the Redmi Note 10, have witnessed a price hike. We also foresee an inevitable increase of 3-6 percent in prices of our smart TVs from July 1 onwards," said Xiaomi spokesperson.

Increased Cost Of Display And Chipsets

Notably, the sudden demand for phones in September last year had increased the cost of display panels of handsets. Additionally, the cost of chipsets has been increased by 20 percent, while battery packs cost has been increased by 10 percent. Also, the camera modules and sensors have seen a rise of 5 percent.

"This coupled with an unprecedented increase in shipping charges has had an effect on almost all the technology players including us. While we have tried to absorb the increasing costs, some of our products including the Redmi Note 10, have witnessed a price hike," the spokesperson added.

Increased Prices Of Smart Televisions Might Affect Demand

This is the third time in a year when any company increased the prices of its products. Companies have already increased prices by 10 to 12 percent since the beginning of this year.

In fact, that was the biggest increase in a single year, this is why Counterpoint research analyst Debasish Jana warned that if this situation continues then, it might affect the sales of the product, especially after the second wave of COVID-19.

He added that the reason behind the increased prices of products is the shortage of Open Cells in the market. For the unaware, India is importing Open Cells for smart televisions from China and Vietnam.

It is worth considering that the second wave of COVID-19 and lockdown have affected the business of smartphone and smart television companies. Now, these increased prices are expected to put pressure on their revenue strategies as buyers are avoiding spending huge amounts on costly products.