HP Reportedly Relocating Computer Manufacturing Away From China
According to reports, HP is planning to relocate the production of numerous consumer and commercial laptops to Thailand and Mexico in an effort to expand its supply chain beyond China. This move aims to enhance diversification.
According to a report in Nikkei Asia, this is the first “significant move” by a US company to move its PC supply chain outside of China.
“HP also plans to move some of its laptop production to Vietnam starting next year, one of the suppliers said,” according to the report.
The company is following Silli and Apple by diversifying its supply chains outside of China, as there have been significant disruptions during the pandemic.
“HP plans to shift some of its commercial laptop production to Mexico, while some of its consumer laptop production will go to Thailand,” the report claimed, citing sources.
Global PC shipments fell 15 percent (year-over-year) in the second quarter (Q2) of 2023, but rose 8 percent (QoQ).
According to Counterpoint Research, Lenovo maintained its lead in PC shipments despite an 18 percent (year-over-year) decline, while HP and Apple showed solid performance as market share increased.
After seven consecutive quarters of year-over-year declines, the PC market is showing the first signs of stabilization, including continued quarter-on-quarter growth, according to Gartner.
Gartner expects PC inventory to normalize by the end of 2023 and PC demand to return to growth starting in 2024, he added.
HP’s shipments fell only slightly in the second quarter, ending a streak of consecutive double-digit declines. Its laptop shipments grew modestly, but that was offset by a drop in desktop shipments, the report said.
