Xiaomi May Raise Prices on New Year-End Products, Wang Teng: "Difficult" to Offer More for the Same Price

Xiaomi May Raise Prices on New Year-End Products, Wang Teng: "Difficult" to Offer More for the Same PriceFast Technology reported on August 28th that Wang Teng, Deputy General Manager of Xiaomi's China Market Department and General Manager of the Redmi brand, stated on social media that it is difficult to achieve "more for the same price" for new products launching at the end of the year. He frankly admitted that the continuous rise in upstream costs poses a significant challenge to product definitions for the upcoming wave of releases

Xiaomi May Raise Prices on New Year-End Products, Wang Teng: "Difficult" to Offer More for the Same Price

Fast Technology reported on August 28th that Wang Teng, Deputy General Manager of Xiaomi's China Market Department and General Manager of the Redmi brand, stated on social media that it is difficult to achieve "more for the same price" for new products launching at the end of the year. He frankly admitted that the continuous rise in upstream costs poses a significant challenge to product definitions for the upcoming wave of releases.

"I know everyone wants more for the same price, but it's really difficult this year," Wang Teng wrote on social media. Facing cost pressures, he posed a question to users: "Do you prefer a downgrade while maintaining the same price, or an upgrade with a slight price increase?"

The trend of rising costs in the mobile phone industry has become undeniable in recent years. Since the beginning of this year, several Android phone manufacturers have implemented minor price increases for their new flagship products. In June, Li Jie, President of OnePlus China, also publicly acknowledged that the price of materials like chips has been increasing every quarter since last year. As manufacturing processes advance and performance and AI capabilities improve, the cost of each generation of flagship chips continues to rise.

Wang Teng's remarks sparked heated discussions among netizens. Some users expressed understanding, arguing that rising costs are unavoidable and that price increases or downgrades are reasonable responses. However, other users admitted that in the current economic climate, price increases in smartphones could affect consumer purchasing power, urging manufacturers to control prices as much as possible.

The mobile phone industry, being a highly competitive market, has always faced cost pressures. However, global supply chain issues, rising raw material prices, and chip shortages in recent years have exacerbated these pressures. Faced with rising costs, phone manufacturers have had to make adjustments, such as improving product value-for-money and optimizing supply chains to cope.

For Xiaomi, balancing competitiveness in the face of rising costs while meeting consumer demands is a question that requires careful consideration. Wang Teng's public statement reflects the current challenges facing the mobile phone industry, suggesting that price fluctuations may become the norm in the near future.