- Lenovo plans to start production in Saudi Arabia by 2026
- The biggest advantage is 10% against 245% reciprocal tax
- The American PC market is 27% of the world market
The main PC manufacturers such as Lenovo, HP and Dell would have explored the construction of new manufacturing factories in Saudi Arabia in order to avoid the American prices raised on Chinese manufacturing goods.
A new report of Digitimate (via Tom material) said Lenovo seems to be the most distant alone, after having announced a PC assembly plant and server in Riyadh in January of this year, supported by an investment of $ 2 billion in a Saudi public investment subsidiary.
With the production which should start by 2026, the plans of OEM based in Hong Kong will see it will open a new headquarters of the Middle East and Africa (MEA) in Saudi Arabia, “[enhancing] its global presence. “”
Use Saudi Arabia to avoid Chinese prices
Digitimate According to HP and Dell, teams also sent to Saudi Arabia to identify potential factory sites after local government invitations.
The largest attraction for manufacturers to move to Saudi Arabia is the reciprocal rates of 10%, against 245% for China.
Having a base in Riyadh would also allow Lenovo, HP and Dell to have better access to the MEA markets – a factor recognized by Lenovo.
In 2024, Lenovo sent 11,872 office computers and laptops to the United States, making it the third largest volume with a market share of 17.2%, behind Dell (22.8%) and HP (25.3%).
With 69,210 pc sold in the United States last year, the country represented 27% of all global PC expeditions, highlighting the country’s purchasing power.
Lenovo, HP and Dell are not the only companies that seek to get out of China to reduce costs. TSMC and Apple recently announced their own manufacturing investments in the United States, covering production, R&D, training and more.
However, the immediate future of the PC market remains uncertain. “In addition to the direct impact of the prices, the nature of stopping ads and delays caused uncertainty about the prices of consumer electronics this year,” said Canalys Greg Davis analyst.
