Bloomberg News

Hewlett-Packard to Shift Laptop Output to Japan From China

June 16, 2011

(Adds analyst comment in third paragraph.)

June 17 (Bloomberg) -- Hewlett-Packard Co., the world’s largest maker of personal computers, said it will shift some production of laptops to Japan from Shanghai this year to shorten delivery times to customers in the country.

The company will assemble laptops geared for corporate customers in a Tokyo factory that currently makes desktop PCs, said spokesman Naoto Miyazawa, confirming an earlier report in the Nikkei newspaper. HP, as the company is known, aims to produce 1.4 million desktops and laptops a year at the plant, he said.

“China has become less attractive as a global manufacturing base,” said Yuichi Ishida, a Tokyo-based analyst at Mizuho Investors Securities Co. “Personnel expenses in China are rising by about 20 percent a year.”

Shifting production from China will allow Palo Alto, California-based HP to shorten product delivery times in Japan to five business days from 10 days, Miyazawa said. Japan accounts about 2.5 percent of HP’s global PC sales by volume, Miyazawa said.

--Editors: Young-Sam Cho, Dave McCombs

To contact the reporter on this story: Kazuyo Sawa in Tokyo at ksawa3@bloomberg.net

To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net


Best LBO Ever
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus