Is COVID-19 the reason behind sudden rise in prices of smartphones? Read report
As per reports, due to the Covid-19 situation, there has been a spike in the prices of smartphones.
Market leader Xiaomi, along with Samsung, Vivo, Oppo, Realme, and other smartphone companies, is facing a shortage of components, including chipsets and displays and more.
Recently, chipsets are having a 20% increase in cost, battery packs by 10% increase and camera modules by 5% increase in price.
Xiaomi spokesperson told ET, "While we have tried to absorb the increasing costs, with the dollar appreciating -we foresee an inevitable increase in prices of smartphones in the coming days."
"Despite these changes, we at Mi India continue on our promise of keeping less than 5% profit margin on every smartphone sold in India," he said.
Lava and Micromax companies are dealing with the situation, whereas Realme said that some brands have been passing on the price hikes on smartphones to users. Realme is still assessing the situation.