HP and Asus are moving PC production back to China as soaring component costs force a rethink

[Win7user]

Sadly you are in the far, far minority, otherwise most people wouldn't be ready to dump Trump while seeing the Republicans desperately scrambling trying to stop their eminent losses in Congress.

We can resume this conversation on November 4th....lol

You, the consumer, will pay for those tariffs

Yeah, so I guess you won't be able to purchase that $1,000 Smartphone you been looking at. Too bad so sad....

 

[The Talking Tech]

Yeah, so I guess you won't be able to purchase that $1,000 Smartphone you been looking at. Too bad so sad....

In this economy who is dumb enough to be upgrading phones like we used to 2 years ago?...and if your phone broke, you should be buying whatever is the cheapest option possible because if you don't you are feeding these companies your irresponsible shopping habits.

 

[Loadedaxe]

I think everyone is missing the bigger picture here.

Yes, tariffs, memory shortages, manufacturing costs, and supply chains are factors. But I think we're overlooking something much more fundamental...consumer behavior is changing, and the traditional PC market is changing with it.

I bought a new laptop every couple of years from 2000 until around 2018. I haven't needed another one since. My iPad and phone replaced most of what I used a laptop for. Just recently, I almost bought a $2,000 MacBook Pro before asking myself, "What the hell do I actually need this for?" The answer was nothing.

How many millions of consumers are doing the same thing without even realizing it?

AI is only going to accelerate that transition. We're moving toward a world of phones, tablets, wearable devices, personal AI assistants, and cloud computing. The processing power isn't disappearing...it's moving into data centers, where equipment still needs to be maintained, upgraded, and replaced.

And that's another thing people overlook when they predict the AI bubble will burst. Even if new data center construction slows, the infrastructure already built will require ongoing investment. Technology doesn't stop evolving simply because the initial construction boom ends.

Perhaps HP, Dell, Asus, and Acer are responding to component costs and manufacturing economics. But I think there's a much bigger question...Are we looking at a temporary PC market downturn, or the beginning of a fundamental shift in what consumers actually need?

We've spent decades buying faster computers simply because faster computers became available. Now we're developing technology that increasingly eliminates the need to own that computing power ourselves.

That isn't necessarily a bad thing. It's technological evolution.

Sometimes we're so busy looking at the trees that we completely miss what's happening to the forest.

 

[mojoxer]

It seems like many people in the comments are focussed on America First, instead of reading this one sentence in the story: "The resurgence of China as a hub for PC manufacturing also highlights the challenges faced by emerging low-cost destinations". Not all PCs are bound for American consumers, and HP, Dell and Asus would like to sell to India, China, Indonesia, etc. If all the manufacturing moved (back) to the US, with its increased costs (acknowledged by many in the comments), how would those big 3 PC makers even think to compete with other PC makers? Of course, we as American consumers think of ourselves first, but we're not the only consumers on the planet, nor are we even the largest consumer group. And, if the current income trends hold, we may not even be the most desirable consumer group for much longer. Europe is currently a very attractive market from an income level as peers, and there are almost 3 billion Asians knocking on the door as uncoming consumers. If even 10% of them are currently as wealthy as American consumers, they are our equal, and they are a growing class of consumers as their incomes grow.

As the story points out, the moves are about supply chains and China's proven track record in electronics manufacturing. It reads that these are the biggest obstacles to setting up production in the "US friendly" production countries like Thailand, Vietnam, and India. Sadly, those are also the major roadblocks to reshoring production to the US, along with labor costs. Components will (largely) be coming from China, Taiwan, and Japan. China has a 40-year history of developing its electronics manufacturing skills and production to where it is today, while the US devolved its prowess, except in specialized military applications. To be sure, the US still has some of the skills, but they are maybe on a par with the Chinese. US R&D may lead the world, but R&D isn't manufacturing. The others have been working on it, but they have 10-20 years of growth, not the 40+ the Chinese have.

 

[rmcrys]

it's not just an "American greed" situation.

1) AI eating most of the hardware for the next years rising the hardware's cost: American made

2) high tariffs: American made

3) middle east instability that ended in absurd oil prices: American made

4) Ukraine lower support than what could have: American made

5) buying from Russia despite sanctions: American made

6) conflicts with trade partners rising prices: American made

7) trying to inflate prices even further to lower the debt cost: American made

It seems that almost of it is... America's fault.

 

[Vrmithrax]

Well, ASUS isn't an American company, so I'd say my opinion stands. Weird question.

Weird how? I asked a question, pointing out that a non-American company is moving production to China. As in, it has nothing to do with America. So again, I ask how is it American greed causing this? Is America the only customer ASUS has? No? Not even close? Wait the US doesn't even account for half as much of the ASUS sales as their own Asia-Pacific market? And it's not even as much as Europe's overall sales? Huh, then I guess maybe it's a valid question.

Amazing how people love to throw shade, yet fail to pay any heed to other facts. Like ignore that the US, who everyone wants to blame for everything, only accounts for about 1/4 or so of the total electronics consumption globally. So, 75% of the actual market has zero to do with tariffs that everyone likes to blame, yet prices still skyrocket, demand is still overshadowing supply, and they are moving back to China manufacturing to save money.

Am I saying the US isn't a big problem in all of this? Hell no, the trade/tariff wars and general political stuff is definitely not helping the global situation in any way. But, that doesn't warrant assigning blame to American greed when 3/4 of the market and demand are driving the costs. China's the world leader in number of data centers, but it's still all US greed that's the problem, right?

Blanket blame comments that ignore facts are never helpful to the overall conversation.

 

[LimyG]

Well, countries don't like being black mailed. They placated him for a while, little choice.

Pretty obvious really. I wonder if Trump will even notice? Lots of work needed at the white house. Lots of renaming of world famous building and places to do. Washington needs gold plating.

 

[LimyG]

1) AI eating most of the hardware for the next years rising the hardware's cost: American made

2) high tariffs: American made

3) middle east instability that ended in absurd oil prices: American made

4) Ukraine lower support than what could have: American made

5) buying from Russia despite sanctions: American made

6) conflicts with trade partners rising prices: American made

7) trying to inflate prices even further to lower the debt cost: American made

It seems that almost of it is... America's fault.

Yes.

I would place the blame mainly on the destroyer in chief.

 

[gamerk2]

That isn't necessarily a bad thing. It's technological evolution.

So...back to the terminal model?

 

[schinbone]

1) AI eating most of the hardware for the next years rising the hardware's cost: American made

2) high tariffs: American made

3) middle east instability that ended in absurd oil prices: American made

4) Ukraine lower support than what could have: American made

5) buying from Russia despite sanctions: American made

6) conflicts with trade partners rising prices: American made

7) trying to inflate prices even further to lower the debt cost: American made

It seems that almost of it is... America's fault.

You are correct, but to put a finer point on it, trump and republican made. The republican party has been carrying water for billionaires and corporations since the scumbag reagan was in office.

 

[Superconductor]

Tariff Derangement Syndrome

 

[LimyG]

Tariff Derangement Syndrome

Yeah, I agree. The implementation, withdrawl, threats was like a spoilt child.
The result: Trump licks bottom of China's Chi at the airport and gives full state honors.
I wish Trump would stop with the Make China Great again stuff. Off his rocker. Clueless one day to the next. Comedy.

And what with the asss obsession? What a joke he's become.

 

[toooooot]

Yeah, I agree. The implementation, withdrawl, threats was like a spoilt child.
The result: Trump licks bottom of China's Chi at the airport and gives full state honors.
I wish Trump would stop with the Make China Great again stuff. Off his rocker. Clueless one day to the next. Comedy.

And what with the asss obsession? What a joke he's become.

I do not see much difference in the way Biden and Trump treated China. Yes, at first Trump imposed huge tariffs on Chinese goods. And how ling did those last?
What I am saying, there is a general policy our entire governing system uses for China. It is a very slow separation where some tariffs introduced, some mining projects opened at home to stop dependance or China. To me it looks like trying to cure a giant tumor using slow and non-invasive measures. There is nothing we share with China. Furthermore, its principles and goals create a huge threat not for USA but the entire democratic world. Besides us, Westerners, Africa will be treated 10 times more if China becomes first world power.
They will literally be taken slaves by China. I already read about some of the ways they put African countries on a hook making them forever dependent on China. It will get worse for them. Every moment
China gets bigger, it becomes more dangerous. We need a lot more measures, and not alone but with all other Western countries. Unfortunately, we are going the opposite direction.

 

[maxxcool7421]

1) AI eating most of the hardware for the next years rising the hardware's cost: American made

2) high tariffs: American made

3) middle east instability that ended in absurd oil prices: American made

4) Ukraine lower support than what could have: American made

5) buying from Russia despite sanctions: American made

6) conflicts with trade partners rising prices: American made

7) trying to inflate prices even further to lower the debt cost: American made

It seems that almost of it is... America's fault.

WHAT!? KIDNAPPING PRESIDENTS AND STEALING A COUNTRIES OIL AND KILLING ANOTHER PRESIDENT CAUSED A MASSIVE GLOBAL COOLDOWN AND IT *TOPPLING* REPUBLICAN HELD STATES INTO DEMOCRATS HANDS??? OH MAN ... MAYBE WE SHOULD NOT HAVE DONE THAT

 

[LimyG]

I do not see much difference in the way Biden and Trump treated China. Yes, at first Trump imposed huge tariffs on Chinese goods. And how ling did those last?
What I am saying, there is a general policy our entire governing system uses for China. It is a very slow separation where some tariffs introduced, some mining projects opened at home to stop dependance or China. To me it looks like trying to cure a giant tumor using slow and non-invasive measures. There is nothing we share with China. Furthermore, its principles and goals create a huge threat not for USA but the entire democratic world. Besides us, Westerners, Africa will be treated 10 times more if China becomes first world power.
They will literally be taken slaves by China. I already read about some of the ways they put African countries on a hook making them forever dependent on China. It will get worse for them. Every moment
China gets bigger, it becomes more dangerous. We need a lot more measures, and not alone but with all other Western countries. Unfortunately, we are going the opposite direction.

Yes, you are certainly right about China, and the way it uses Africa.

I also fully agree with "all Western countries." sentiment.

 

[Rudyduu]

That's your mistaken interpretation of it. Mine is, I have no problem paying higher prices, to keep companies in the United States. and Americans working... The only person lying or mistaken here, is you.

Most people can't afford to pay more. What small to medium business can afford to bring manufacturing back to the US?

Tariffs do not increase domestic manufacturing. They are designed to make the products a country already makes competitive with foreign goods. The costs to build domestic manufacturing is exponentially higher than just paying tariffs and passing the costs onto customers. That is the lie we were told, tariffs don't work like they were claimed. All tariffs did was put money in the government's coffers then when they were struck down that money went back to the companies who got to raise prices, increase profits then get a bonus later on.