Big shock for China! HP is moving production of millions of PCs to Thailand, Mexico

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TAIPEI: PC and printer major HP is moving production of millions of consumer and business laptops to Thailand and Mexico this year, to diversify its supply chain outside of China.

It is the first “significant step” by the US-based company to move its personal computer supply chain outside of China, according to a Nikkei Asia report.

“HPO plans to shift some laptop production to Vietnam, starting next year, a supplier said,” the report said.

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The company is following Dell and Apple in diversifying their supply chains outside of China, which has undergone significant disruptions due to the pandemic.

“HP plans to move some commercial notebook computer production to Mexico, while a portion of its consumer laptop production will go to Thailand,” the report claimed, citing sources.

The second quarter (Q2) of 2023 saw global PC shipments decline 15 percent (year-on-year) but rise 8 percent (quarter-on-quarter).

According to Counterpoint Research, Lenovo maintained its top position in PC shipments despite an 18 percent (year-over-year) decline, while HP and Apple showed solid performance with market share gains.

After seven consecutive quarters of decline over the years, the PC market is showing early signs of stabilization, including sequential growth from previous quarters, 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 shipments fell slightly in the second quarter, ending a string of consecutive double-digit declines. Its laptop shipments grew modestly but were offset by a decline in desktop shipments, the report said.

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