Asustek Computer Inc (華碩), the world’s No. 5 PC vendor, has prebuilt inventory as part of its efforts to avert cost increases stemming from hefty “reciprocal” tariffs slapped by the US on Asian countries, which house a majority of the world’s PC manufacturing factories.
US President Donald Trump imposed a tariff of 32 percent on imports from Taiwan, 34 percent on China and 46 percent on Vietnam among numerous countries around the world, which took effect yesterday.
Trump on Tuesday increased the punitive tariff on Chinese goods to 104 percent.
Photo: Ann Wang, Reuters
“Asustek is closely monitoring the changes in policy and tariff system to flexibly adjust its inventory management policy, supply chain allocations and pricing strategy,” the company said in a statement on Tuesday, adding that it has strategically prebuilt extra inventories as part of its contingency plans.
In a precautionary move, Asustek boosted stocks at its US hubs during the fourth quarter of last year, the company said.
The US market accounted for 13 to 15 percent of the company’s total revenue last year, while Asia made up 47 percent and Europe 29 percent, the company said.
Asustek outsources most of its own-brand computer production to electronics manufacturing service providers and sources components from a variety of suppliers.
As such arrangements would lead to increases in manufacturing costs, the company might have to pass on the cost increases to end customers, it said.
PC vendor Acer Inc (宏碁) said in February it would raise computer retail prices by 10 percent, as tariff hikes would drive up costs.
Separately, Asustek yesterday reported revenue of NT$64.3 billion (US$1.95 billion) for last month, up 29 percent from NT$49.73 billion a year earlier and marking its best March revenue ever.
Revenue in the first quarter surged 21.36 percent to NT$147.7 billion from NT$121.7 billion the year before, also the best first-quarter performance in the company’s history, Asustek said.
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