HP, Dell, Microsoft and Amazon are the latest companies considering moving parts of their hardware production out of China in light of the ongoing commercial war with the United States. Nikkei reports that HP and Dell both want to move up to 30 percent of their portable output out of the country, Microsoft can move some Xbox production, and Amazon can move some production of its Kindles and Echo speakers. Acer and Asustek also investigate production outside China, according to the report.
The potential moves are all as a reaction to a trade war that has seen the US set a 25 percent tariff of $ 200 billion of goods. Although the technology industry has largely been unspoilt, new tariffs could soon extend the fees of laptops, smartphones, and game consoles, and bring significant costs that could lead to higher prices for consumers and leaner margins for manufacturers.
These four companies are & # 39; t the only big tech names want to shift their production. Nikkei has previously reported that Apple is looking at moving up to 30 percent of its hardware production from China, Wall Street Journal said Nintendo could move a little Switch Production and Bloomberg said that Google has moved some production of Nest products. Most companies still seem to keep hardware production in Southeast Asia, with production moving to a number of countries.
Hardware manufacturing has long been centered on China, where production costs are cheaper, components of the technical supply chain are concentrated, and manufacturers are increasingly specialized in creating state-of-the-art technology. It has been the status quo for two decades, but the tariff situation quickly shows how tough the situation is, with the ongoing commercial struggle potentially raising costs across the industry, and the companies have no easy way out.