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Lenovo shifting back component orders to Taiwan due to bad experiences with China-based suppliers

Posted on Tuesday, August 23 2016 @ 13:02:59 CEST by

Sources in the upstream supply chain whispered to DigiTimes that Lenovo has shifted back some of its component orders from Chinese suppliers to Taiwanese ones.

The Chinese PC maker hoped switching to China-based suppliers would help it to save costs, but it observed the opposite effect as the Chinese suppliers turned out to be less competitive in terms of product quality, delivery time and production capacity.
The sources pointed out that the PC market is already mature and pushing shipments is no longer a viable choice for increasing profits. Lenovo is the largest PC vendor worldwide, but its profits are still weak despite its big shipment volumes.

In addition, to improve its profitability, Lenovo also turned its focuses to ultra-thin and gaming models. However, these products' components require high crafting capability and therefore Lenovo has turned to Taiwan-based component suppliers as most China-based one are still unable to handle related component supply, the sources said.



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