HP’s Strategic Shift: Manufacturing Laptops in Mexico

Hewlett-Packard (HP) is set to relocate the production of commercial laptops to Mexico, while consumer laptops will be manufactured in Thailand, according to sources in Asia. The move comes as HP aims to reduce its dependency on manufacturing in China and diversify its production base.

Joining the ranks of Dell and Apple, HP’s decision to tap into Mexico’s well-established computer production capabilities is driven by the desire to mitigate risks and serve its primary North American market more effectively.

In partnership with potential suppliers, HP is actively working to ensure a seamless supply chain in its new manufacturing locations. By expanding operations in Southeast Asia and other regions, HP is strengthening its foothold in the global market.

This strategic plan comes in the wake of Dell’s efforts to minimize the use of “Made in China” chips and components in its products, signaling a broader trend in the industry.

In a significant development, computers emerged as Mexico’s top export to the United States in 2022, surpassing the automotive sector. With record-breaking sales of $36.7 million worth of computers, Mexico accounted for 29.7% of the US computer market, second only to China’s 45%. A decade earlier, China held a dominant 65.3% market share, while Mexico’s share was 17.9%.

With leading global electronics companies already operating in Mexico, catering primarily to the US and Canadian markets, the country has become a crucial player in the industry.

HP’s move to manufacture laptops in Mexico demonstrates the country’s growing significance as a key player in the electronics manufacturing sector, serving as a strategic pivot to better cater to the North American market.

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