Lenovo: Moves production reportedly back to Taiwan
China had a bad reputation for low-quality products in the eyes of Western consumers for many years. This has changed somewhat in the last years, especially in the consumer-technology market, since nearly everything comes from the country of the dragon, from laptops to TVs to Smartphones.
In this case however, that bad reputation seems to resurface, if you believe the Taiwanese industry-media site DigiTimes. They report that the biggest PC manufacturer Lenovo is moving its production back from the mainland China to Taiwan.
Since a few years, Lenovo is sourcing more and more parts from Chinese component-manufacturers and OMDs. This was done because Lenovo hoped for cost-saving, according to DigiTimes. However, the opposite was true. It turns out that its cheaper to order from Taiwanese OMDs. Not only that, the Taiwanese manufacturers can also produce in bigger capacity, and even more importantly, quality.
Lenovo is a manufacturer with a relatively small margin, even compared to its fellow PC manufacturers, who also don´t have big margins. So lately Lenovo has tried to expand more in the high-end market, with products in the categories Gaming as well as Ultrathin-laptops. This may be one of the big reason for the change of Lenovos production plans, because Chinese OMDs and component manufacturers just couldn´t deliver the required quality according to DigiTimes.