HP, Microsoft, Google follow Apple in planning China production cuts

Posted:
in General Discussion edited July 4
After reports that Apple is investigating a production shift out of China, other firms including Sony, Dell and Nintendo are also planning to move manufacturing of devices such as consoles and smart speakers away from the country because of U.S. tariffs.

HP is one of many firms reportedly moving production of notebooks and other devices away from China
HP is one of many firms reportedly moving production of notebooks and other devices away from China


Technology firms including Google, Microsoft and HP are reportedly planning to move production of devices ranging from games consoles to laptops and speakers away from China. It is chiefly to avoid tariffs in the U.S.-China trade dispute, but also reflects recent price fluctuations.

"China's hiked production costs have already led to a decline in global orders," an unnamed local government official told Asian news publication Nikkei. "Now, the uncertainties associated with the trade war are adding insult to injury."

Nikkei reports that HP has prepared plans to move between 20% and 30% of its production outside China. The company, which chiefly makes notebook computers, is looking to create a new supply chain in either Thailand or Taiwan.

Dell has also looked at Taiwan and has tested a run of notebook production there, in Vietnam and the Philippines.

Similarly, Amazon is believed to be targeting Vietnam for its Kindle and Echo products. Nintendo is also considering Vietnam, and Microsoft is investigating both Thailand and Indonesia.

These plans have not been affected by last weekend's unexpected truce between the President Trump and China's President Jinping.

"There's no turning back," trade economist Darson Chiu of the Taiwan Institute of Economic Research told Nikkei. "It is not only about tariffs but also about reducing risks for the long term [such as rising labor costs]"

"Southeast Asian countries and India will together become new competitive hubs in [the] coming years for electronics production," he continued.

According to Nikkei, each of these companies has been planning for many months, and in some cases before Apple.

"The industry consensus is to move an average of 30% of production out of China [and] everyone needs to come up with a plan," an unnamed supply chain executive said. "Apple is really the very last and the slowest to start formulating plans, while everyone else out there is much more aggressive."

Apple has previously been reported to be planning for such a move since late last year. It also recently announced the opposite, that Mac Pro production would be done in China.

Neither Apple nor most of the companies in the Nikkei report have commented. However, Acer and Asustek confirmed that they are investigating.

Dell reportedly declined to comment directly about the shift but said it hopes to see the trade dispute end. "[Dell encourages] the US and Chinese governments to continue dialog to resolve outstanding issues," said a spokesperson.
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Comments

  • Reply 1 of 32
    GeorgeBMacGeorgeBMac Posts: 4,933member
    So we are moving production out of the highest quality, lowest cost facilities in order to support a failing, trumped up trade war?

    As Winston Churchill pointed out:  "Americans always do the right thing -- after they've tried everything else"
    edited July 3 flyingdprotateleftbyteCarnage
  • Reply 2 of 32
    matrix077matrix077 Posts: 727member
    So we are moving production out of the highest quality, lowest cost facilities in order to support a failing, trumped up trade war?

    As Winston Churchill pointed out:  "Americans always do the right thing -- after they've tried everything else"
    It is not about Trump. It’s about communist China that will never play fair to anyone. 
    mwhiteredhotfuzzflyingdpjbdragonjas99StrangeDaysAppleExposedapplesnorangescat52jony0
  • Reply 3 of 32
    matrix077 said:
    So we are moving production out of the highest quality, lowest cost facilities in order to support a failing, trumped up trade war?

    As Winston Churchill pointed out:  "Americans always do the right thing -- after they've tried everything else"
    It is not about Trump. It’s about communist China that will never play fair to anyone. 
    The President is just the Man of Action.  Others have complained about the trade deficits, and "US Loses first, then gains 'in the long run'" but it seems that the 'long run' happens after the one that negotiated has left office, or forgotten about things for the short term gain.

    Maybe the OP is right, but what the President is doing is at least something different than capitulation.

    Oh, and as for China being the highest quality, lowest cost facilities, that was said about Japan, Korea, and Taiwan.  After a while the cheapest is not so cheap anymore, and manufacturers here in the US start looking elsewhere.
    mwhiteredhotfuzzgeorgie01jbdragoncat52
  • Reply 4 of 32
    GeorgeBMacGeorgeBMac Posts: 4,933member
    matrix077 said:
    So we are moving production out of the highest quality, lowest cost facilities in order to support a failing, trumped up trade war?

    As Winston Churchill pointed out:  "Americans always do the right thing -- after they've tried everything else"
    It is not about Trump. It’s about communist China that will never play fair to anyone. 
    The President is just the Man of Action.  Others have complained about the trade deficits, and "US Loses first, then gains 'in the long run'" but it seems that the 'long run' happens after the one that negotiated has left office, or forgotten about things for the short term gain.

    Maybe the OP is right, but what the President is doing is at least something different than capitulation.

    Oh, and as for China being the highest quality, lowest cost facilities, that was said about Japan, Korea, and Taiwan.  After a while the cheapest is not so cheap anymore, and manufacturers here in the US start looking elsewhere.
    Yes, looking elsewhere to find the highest quality, lowest cost providers is the cornerstone of global, free market capitalism.   But to do that because they were chased away by political strife makes everybody a loser.
  • Reply 5 of 32
    GeorgeBMacGeorgeBMac Posts: 4,933member
    matrix077 said:
    So we are moving production out of the highest quality, lowest cost facilities in order to support a failing, trumped up trade war?

    As Winston Churchill pointed out:  "Americans always do the right thing -- after they've tried everything else"
    It is not about Trump. It’s about communist China that will never play fair to anyone. 
    Yeh!   They keep making things better and cheaper.   Damn cheaters!  Not fair!
  • Reply 6 of 32
    matrix077matrix077 Posts: 727member
    matrix077 said:
    So we are moving production out of the highest quality, lowest cost facilities in order to support a failing, trumped up trade war?

    As Winston Churchill pointed out:  "Americans always do the right thing -- after they've tried everything else"
    It is not about Trump. It’s about communist China that will never play fair to anyone. 
    Yeh!   They keep making things better and cheaper.   Damn cheaters!  Not fair!
    It’s not about what they make. It’s about what they don’t allow to be sold there unless you meet all of their very rigid regulations, designed to protect their own products. 
    And it’s a lot of everything else. This is a big topic that could be written in pages and pages. In short, western world shouldn’t rely on communist China to build their goods unless China change their behavior. 
    edited July 3 6502flyingdpgeorgie01jbdragonjas99mobirdStrangeDaysAppleExposedapplesnorangescat52
  • Reply 7 of 32
    redhotfuzzredhotfuzz Posts: 298member
    So we are moving production out of the highest quality, lowest cost facilities in order to support a failing, trumped up trade war?

    As Winston Churchill pointed out:  "Americans always do the right thing -- after they've tried everything else"
    Good grief, everything is about Trump for some of you people. 

    Becoming reliant on manufacturing in a repressive Communist country that is our #1 geopolitical rival, one that refuses to enforce IP rights (have you seen Xiaomi’s new “Mimojis”???) and rips off everything American countries do with impunity, was a bad idea from the start. Shifting away from Chinese dependence was inevitable and is overdue.
    georgie01jbdragonjas99LordeHawkAppleExposedcat52
  • Reply 8 of 32
    redhotfuzzredhotfuzz Posts: 298member
    Yeh!   They keep making things better and cheaper.   Damn cheaters!  Not fair!
    If you actually owned a company and produced a product that was blatantly ripped off and then sold at a cut rate by the Chinese, you’d be furious too. They do this not just to the Apples of the world, but to the small family-run American companies too.
    flyingdpgeorgie01jbdragonjas99StrangeDaysAppleExposedCarnageapplesnorangescat52jony0
  • Reply 9 of 32
    lkrupplkrupp Posts: 7,162member
    matrix077 said:
    So we are moving production out of the highest quality, lowest cost facilities in order to support a failing, trumped up trade war?

    As Winston Churchill pointed out:  "Americans always do the right thing -- after they've tried everything else"
    It is not about Trump. It’s about communist China that will never play fair to anyone. 
    Trying to have a discussion with #GeorgeBMac is futile. He is obsessed with Trump hatred. That’s ALL he posts about. He probably entered therapy after the 2016 election but the counseling failed and he fell off the deep end. It could also be post-election PTSD. Whatever it is he’s non-functional now so it’s best to just block him.
    matrix077jbdragonStrangeDaysAppleExposedcat52
  • Reply 10 of 32
    peteopeteo Posts: 366member
    So we are moving production out of the highest quality, lowest cost facilities in order to support a failing, trumped up trade war?

    As Winston Churchill pointed out:  "Americans always do the right thing -- after they've tried everything else"
    Good grief, everything is about Trump for some of you people. 

    Becoming reliant on manufacturing in a repressive Communist country that is our #1 geopolitical rival, one that refuses to enforce IP rights (have you seen Xiaomi’s new “Mimojis”???) and rips off everything American countries do with impunity, was a bad idea from the start. Shifting away from Chinese dependence was inevitable and is overdue.
    So much for "free" markets that repubs love to shout! The issue here is this could have been done with out taxing Americans on the goods they buy. Also what good is this going to even do for the US? It will just be another country making products with cheap "slave" labor instead of china. Does nothing to help american workers. Make no sense.
    GeorgeBMacCarnage
  • Reply 11 of 32
    georgie01georgie01 Posts: 254member

    Becoming reliant on manufacturing in a repressive Communist country that is our #1 geopolitical rival ... 
    Shifting away from Chinese dependence was inevitable and is overdue.
    +1. This isn’t about cheap quality labour. Trump is simply the first person bold enough to actually do what everyone knows needs to be done but are too cowardice to do it.
    edited July 3 AppleExposed
  • Reply 12 of 32
    mike54mike54 Posts: 347member
    Lots of anti-China sentiment here from those haven't stepped foot in China and those that don't understand its past let alone the present, and from those that, unquestionably, get all their opinions from mainstream US/western media.

    Anyway, China's labour costs have risen and corporations have been looking for alternatives to China way before Trump came on the scene. Its has nothing to do with trade imbalance, espionage or national security, it has all to do with corporate profits.
    AppleExposedCarnage
  • Reply 13 of 32
    jbdragonjbdragon Posts: 2,149member
    peteo said:
    So we are moving production out of the highest quality, lowest cost facilities in order to support a failing, trumped up trade war?

    As Winston Churchill pointed out:  "Americans always do the right thing -- after they've tried everything else"
    Good grief, everything is about Trump for some of you people. 

    Becoming reliant on manufacturing in a repressive Communist country that is our #1 geopolitical rival, one that refuses to enforce IP rights (have you seen Xiaomi’s new “Mimojis”???) and rips off everything American countries do with impunity, was a bad idea from the start. Shifting away from Chinese dependence was inevitable and is overdue.
    So much for "free" markets that repubs love to shout! The issue here is this could have been done with out taxing Americans on the goods they buy. Also what good is this going to even do for the US? It will just be another country making products with cheap "slave" labor instead of china. Does nothing to help american workers. Make no sense.
    How do you have a FREE MARKET if 1 side (China) is screwing you over? Just put up with it like we have? The only thing we can do is do the same as them. As you can see, in the end, it's China that will be hurt far more than the U.S. It may already be to late. Companies are wising up and thinking maybe they shouldn't put all their eggs in one basket (China). This is a good thing. Some jobs will come back to the U.S. but many will go to a number of other countries where a growing middle class can be created, just like in China. The same thing that happened in China can happen with these other countries and personally I think that's a good thing.

    By the way, Tariffs were how the Federal Government used to fund it's self. As for higher prices. Some things, the companies will eat the cost and make less profit. At least for a while, hoping the tariffs don't last to long. Others will eat part of the cost and prices go up a little, and others, well you will pay more. At some point the Tariffs will end and the U.S. will be better off. China on the other hand,.....They're already hurt and the longer they hold out hurts them more and more and businesses start to flee. It won't happen overnight as these things take time. But already, those wanting to go to China are now taking a second look else ware and those already in China are looking outside of China and will start moving some, maybe all of their business else ware. There are a lot of other countries that will play fair and by the rules. It may take 30 years. It should be a interesting future for sure.
    edited July 3 jas99mobird
  • Reply 14 of 32
    StrangeDaysStrangeDays Posts: 8,237member
    matrix077 said:
    So we are moving production out of the highest quality, lowest cost facilities in order to support a failing, trumped up trade war?

    As Winston Churchill pointed out:  "Americans always do the right thing -- after they've tried everything else"
    It is not about Trump. It’s about communist China that will never play fair to anyone. 
    Yeh!   They keep making things better and cheaper.   Damn cheaters!  Not fair!
    If you don't think China is cheating by stealing IP or manipulating their currency, then you either haven't been paying attention to the news the past decade, or you're a plant for China.
    AppleExposeddick applebaum
  • Reply 15 of 32
    StrangeDaysStrangeDays Posts: 8,237member

    lkrupp said:
    matrix077 said:
    So we are moving production out of the highest quality, lowest cost facilities in order to support a failing, trumped up trade war?

    As Winston Churchill pointed out:  "Americans always do the right thing -- after they've tried everything else"
    It is not about Trump. It’s about communist China that will never play fair to anyone. 
    Trying to have a discussion with #GeorgeBMac is futile. He is obsessed with Trump hatred. That’s ALL he posts about. He probably entered therapy after the 2016 election but the counseling failed and he fell off the deep end. It could also be post-election PTSD. Whatever it is he’s non-functional now so it’s best to just block him.
    Yeah it's a shame because while i feel the current president is a very poor one, I wouldn't be so crazy as to take the opposite opinion as him on everything just because. That defies reason.
  • Reply 16 of 32
    StrangeDaysStrangeDays Posts: 8,237member

    mike54 said:
    Lots of anti-China sentiment here from those haven't stepped foot in China and those that don't understand its past let alone the present, and from those that, unquestionably, get all their opinions from mainstream US/western media.

    Anyway, China's labour costs have risen and corporations have been looking for alternatives to China way before Trump came on the scene. Its has nothing to do with trade imbalance, espionage or national security, it has all to do with corporate profits.
    I have stepped foot in China, when I studied it in university. While I have sympathy for the people of China, their method of governance is entirely corrupt, violent, murderous, authoritarian, and cheats. Part of that is cultural, as merchants often try to cheat unless caught, and then it's a game of saving face.

    Six heads of US intelligence agencies are in agreement that China and the CCP is a threat to democracy and international communications. These are the same heads that said Russia interfered in our election. I believed them then, and I believe them now. China is not friendly, is a threat, and is exporting authoritarianism. Their world order is not the one I want to live in or put trust in.

    https://www.baldingsworld.com/2019/06/17/is-china-exporting-authoritarianism/

    edited July 3 AppleExposedapplesnoranges
  • Reply 17 of 32
    tzeshantzeshan Posts: 1,996member
    matrix077 said:
    matrix077 said:
    So we are moving production out of the highest quality, lowest cost facilities in order to support a failing, trumped up trade war?

    As Winston Churchill pointed out:  "Americans always do the right thing -- after they've tried everything else"
    It is not about Trump. It’s about communist China that will never play fair to anyone. 
    Yeh!   They keep making things better and cheaper.   Damn cheaters!  Not fair!
    It’s not about what they make. It’s about what they don’t allow to be sold there unless you meet all of their very rigid regulations, designed to protect their own products. 
    And it’s a lot of everything else. This is a big topic that could be written in pages and pages. In short, western world shouldn’t rely on communist China to build their goods unless China change their behavior. 
    Do you know that India has exactly the same practice as China? Maybe more severe? This is economics 101. If you are economically less competitive, you will use protectionist regulation to protect domestic industry. On this aspect, I always wonder some Americans are so hateful about a developing nation. 
    GeorgeBMac
  • Reply 18 of 32
    tzeshantzeshan Posts: 1,996member

    matrix077 said:
    So we are moving production out of the highest quality, lowest cost facilities in order to support a failing, trumped up trade war?

    As Winston Churchill pointed out:  "Americans always do the right thing -- after they've tried everything else"
    It is not about Trump. It’s about communist China that will never play fair to anyone. 
    Yeh!   They keep making things better and cheaper.   Damn cheaters!  Not fair!
    If you don't think China is cheating by stealing IP or manipulating their currency, then you either haven't been paying attention to the news the past decade, or you're a plant for China.
    I see the stealings because China's business is much inferior than US. Even Huawei CEO admitted that Apple is his teacher. 
    StrangeDays
  • Reply 19 of 32
    dewmedewme Posts: 2,121member
    Somewhere we hear Robin Williams shouting “Good morning Vietnam...” 
    dick applebaumCarnage
  • Reply 20 of 32
    GeorgeBMacGeorgeBMac Posts: 4,933member
    lkrupp said:
    matrix077 said:
    So we are moving production out of the highest quality, lowest cost facilities in order to support a failing, trumped up trade war?

    As Winston Churchill pointed out:  "Americans always do the right thing -- after they've tried everything else"
    It is not about Trump. It’s about communist China that will never play fair to anyone. 
    Trying to have a discussion with #GeorgeBMac is futile. He is obsessed with Trump hatred. That’s ALL he posts about. He probably entered therapy after the 2016 election but the counseling failed and he fell off the deep end. It could also be post-election PTSD. Whatever it is he’s non-functional now so it’s best to just block him.
    LOL... 
    If your best defense of Trump's crazy, failing trade wars is to attack me, then you've pretty much proved my point.

    Or are you going to fall back on the old standby's like:
    "they're a repressive regime".   (Even though Trump LOVES repressive regimes)
    "They stole our ip" (Even though Huawei leads the world in telecommunications and our tech companies WANT to do business with them!)

    No, it's all nonsense.  So, you best stick to attacking anybody critical of Trump and his nutsy policies.
    Carnage
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