HP says it will move large parts of production out of China

(Image credit: Manuel Esteban / Shutterstock)

HP confirms plans to remove around 90% of its US manufacturing from China
The company acquired more stock in recent months, allowing the move
Total company revenue is up 2.4%

HP has announced that by the end of fiscal year 2025 the company will have moved almost all (90%) of its production for North America away from China.

The change means that, from October 31, 2025, only one tenth of HP products destined for North America will come from China, with HP turning to a more diverse supply chain to both reduce its reliance on China amid ongoing trade wars and enhance its resilience more generally.

The Trump administration has recently placed a 10% tariff on all Chinese imports, which accounts for a significant majority of laptops shipped to the US.

HP pulls US manufacturing out of China

Supply chain shifts are just some of the steps being taken by HP to mitigate the effects of ongoing changes affecting nations globally.

Apart from pulling nearly all of its manufacturing for the States out of China, HP has also increased its inventory during the most recent quarter as a strategy to minimize the impacts of potential US tariff hikes. The company confirmed in its earnings release: “Inventory ended the quarter at $8.4 billion, up 9 days quarter over quarter to 72 days.”

Even in a three-month period of acquiring more inventory, HP also managed to increase revenue by 2.4% to $13.5 billion.

“We are pleased with our Q1 performance, achieving revenue growth for the third straight quarter and advancing our strategy to lead the future of work," noted HP CEO Enrique Lores. "We are focused on taking decisive action to address evolving market conditions in the near-term, while investing in our long-term growth.”

The CEO thanked strong commercial performance, particularly in its Personal Systems business, including AI-capable PCs. The most recent Canalys figures for the final three months of 2024 gives AI PCs a 23% market share of the entire PC market, with HP occupying 12% of the sub-market – considerably behind Apple’s 54% share.

Canalys Analyst Kieren Jessop commented “looming trade policy shifts in the US threaten to disrupt the market that accounts for around one in three shipped PCs and could hamper the upcoming commercial refresh cycle and dampen an already muted consumer outlook.”

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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!