HP Stockpiles Products Amid Tariff Concerns
DAVOS, SWITZERLAND - HP Inc. (HPQ) joins companies stockpiling products due to potential tariffs from President Trump.
CEO Enrique Lores revealed increased inventory to mitigate the initial impact of tariffs. This move aligns with Suntory, which has stockpiled a year's supply of whiskey in Europe.
Artificial intelligence PC demand remains crucial for HP in 2025. The company sources key components from China, leading to concerns about rising material costs and consumer price increases.
The Consumer Technology Association estimates tariffs could increase laptop and tablet prices by 46%, smartphones by 26%. US electronics retailers are closely monitoring tariff scenarios since a significant portion of their inventory is sourced from China.
HP has faced mixed quarters amidst tariff concerns. Consumer PC sales declined, while commercial sales grew. JPMorgan analyst Samik Chatterjee notes competitive pricing challenges as HP adjusts to higher memory costs.
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