HP denies moving half of its PC production capacity out of China: China is an indispensable link in the global supply chain
2024-08-08
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Personal computer (PC) maker HP has denied rumors that it will move production to China.
On August 8, in response to reports that HP would move half of its personal computer production out of China, HP issued a statement denying the reports, saying that the reports were untrue and emphasizing that China is an indispensable and key link in HP's global supply chain and the company is firmly committed to operations and development in China.
HP said that in China, HP's PC manufacturing business still maintains a pivotal position, providing high-quality products and services to the global market. To further enhance the resilience of the supply chain, we are actively optimizing strategies and enhancing flexibility to better serve global customers and meet their diverse needs.
Earlier, foreign media reported that HP is seeking to transfer more than half of its personal computer (PC) production out of China. It is currently negotiating with suppliers and plans to achieve the above goal within two to three years. The ultimate goal may be to achieve 70% of laptops produced outside of China.
HP's PC production bases in China are mainly located in Chongqing. As the first computer brand to settle in Chongqing, HP not only built a laptop production base in Chongqing, but also put into use the HP (Chongqing) R&D Center, and supported industry chain companies such as Quanta and Inventec to carry out intelligent transformation in Chongqing, and built a number of digital factories and digital workshops.
According to a previous report by Chongqing Daily, on September 20, 2023, HP held a celebration for the production of the 400 millionth "Made in Chongqing" HP computer in Chongqing, and signed a cooperation agreement with Chongqing City. The two cities will jointly promote the construction of the Western Land-Sea Corridor, the Chengdu-Chongqing Twin Cities Economic Circle and the national logistics hub city, and assist in the development of Chongqing's open economy and the construction of the "33618" modern manufacturing industry cluster.
At the event, HP Chief Supply Chain Officer Ernest Nicholas said that in the future, HP will continue to use Chongqing as the company's main global production base, focus on technological frontiers and industrial development, continue to deepen its layout in Chongqing, and jointly achieve high-quality development.
HP is the world's leading supplier of personal PCs. According to data from third-party agency IDC, in the second quarter of 2024, including the sub-channel and end-user shipments of desktops, laptops and workstations, the global PC shipments totaled 64.9 million units, a year-on-year increase of 3%, twice the growth rate of the first quarter. Among the world's top five PC manufacturers, Lenovo shipped 14.7 million units in the second quarter, maintaining the top spot in shipments, a year-on-year increase of 3.7%; HP ranked second with 13.7 million units shipped, with a shipment growth of 1.8%; Dell, ranked third, shipped 10.1 million units, a year-on-year decrease of 2.4%.
The Paper reporter Zhou Ling
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