Chinese smartphone maker Xiaomi’s president Wang Xiang said on Wednesday that the global chip lack was increasing the company’s costs and implied that in some cases the prices of its items might rise as a result.

We are going to continue to optimize the costs in our hardware devices, that’s without a doubt, ” he mentioned during the company’s fourth quarter earnings contact. To be honest, we will do good to offer the best price we can to consumers. But sometimes, we may have to pass portion of the cost increase to the customer in different cases.

A lack in computer chips has rocked the electronics market since late last year, since factors such as COVID-19, sanctions against key Chinese technologies companies, and poor anticipations of demand all converged to upend the semiconductor supply chain.

While originally concentrated in the automotive industry, the shortage provides expanded to affect all kinds of chips in a range of equipment products, including smartphones.

Qualcomm Inc, a key supplier to Xiaomi, is definitely struggling to meet orders just for major smartphone brands, Reuters reported earlier this 30 days

We are feeling pressure, yet we are looking okay, ” Wang added, speaking to investors.

The company reported a year-on-year income increase of 24. 8% in the fourth quarter, hitting 70. 5 billion yuan ($10. 8 billion), whilst adjusted net profit increased by 36. 7% to a few. 2 billion yuan.

Smartphone sales, which usually account for the bulk of Xiaomi’s revenue, rose 38% to 42. 6 billion yuan.

The company’s shipments in China surged simply by 52% from a year previously as it grabbed market share through rival Huawei Technologies Company Ltd, which has steadily retreated from the global market due to U. S. -led sanctions, helping Xiaomi corner 15% of the domestic market share.

Huawei has been struck massively by the US ban on essential components , which has naturally caused its shipments in order to fall both within Cina and overseas.

Anticipating the opportunity, Xiaomi along with other Android-based smartphone makers ramped up production of their products towards the end of a year ago.

This, nevertheless , contributed to the chip shortage, which was partly caused by a pandemic-led demand for consumer electronics outstripping supply from chipmakers such as Qualcomm.

Mobile phone prices to increase due to worldwide chip shortage: Xiaomi Chief executive