PC manufacturer Asus announces that the production shift from China may potentially impact sales prices.
Asus may have to implement a price increase if it shifts production out of China. This shift would be a result of the tariffs imposed by the new US administration. The company warns that the costs of this relocation could affect sales prices, but is still trying to keep the impact as minimal as possible.
Price Increase
PC manufacturers are shifting production out of China to avoid tariffs that may be imposed by the new US administration. However, this shift costs time and money, which can affect profit margins as well as sales prices. In light of these events, Asus is also planning to shift its production out of China.
“We will try to limit these costs to a reasonable level. However, as we make further adjustments to production lines, it may become necessary to compensate for some of these costs for our customers,” said an Asus co-CEO during the company’s conference call.
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Nevertheless, Asus is trying to keep the impact on customers as small as possible by proactively managing tariff effects. The company wants to absorb the consequences internally by adjusting production and inventory management strategies. “For Asus, we will do our best to limit the impact of these changes for our customers, we will try to maintain our offering as the most competitive in terms of both service quality and pricing,” the company stated.