Is there a global shortage of laptops

Apr 19, 2022 - 20:21
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Is there a global shortage of laptops

According to the Commercial Times, there could be severe issues with worldwide laptop stocks when curb limits were implemented in China's Kunshan province as well.

In China, epidemiological limitations are also affecting a significant laptop manufacturing district, which might cause difficulties. All of this restricts output in a huge laptop manufacturing area that also produces iPhones, PCBs, and screens.

In the case of laptops, contract manufacturers like Wistron, Compal, Foxconn, Quanta, or Pegatron serve customers such as Apple, Dell, ASUS, Acer, HP, Lenovo, and Microsoft. Due to regulations, all of them are now compelled to limit production.

This location is also home to the AUO facility, which designs and manufactures laptop and monitor screens. According to the Commercial Times, the consequences of the stringent restrictions might be severe, with some predicting a global laptop scarcity.

Other analysts argue that there is no need to be alarmed because the allegations are exaggerated: the wage producers most affected are not limited to this one region.

Berkshire Hathaway bought himself into HP

As a result of the revelation, HP's stock price has climbed dramatically - Berkshire Hathaway now owns 11.4 percent of the company.

Berkshire Hathaway purchased approximately $4.2 billion in HP stock. As a result, the colossus Warren Buffett controls around 11.4 percent of HP. HP's stock price increased by around 10% within a few hours as a result of the news.

Although neither party responded, it was Berkshire's third large investment since Feb. 26 - at the time, Buffett spoke of internal potential providing much higher returns than acquisitions.

Berkshire Hathaway paid $11.6 billion for the insurance business Alleghany and $ 6 billion for a 14.6 percent share in Occidental Petroleum. With no big acquisitions in the previous six years, they sat on $ 146.7 billion in cash, with Buffett expressing a desire to maintain at least $ 30 billion of that.

By the way, Buffett and Berkshire consider four large companies highly valuable: Apple, the company's insurers, BNSF, and Berkshire Hathaway Energy.

Recall, that HP opted to pay $ 3.3 billion to acquire Poly, a manufacturer of audio and video products.

With the acquisition, HP hopes to capitalize on the hybrid work trend, which has resulted in significant demand for specific electronics items. Poly, by the way, was previously known as Platronics.

According to Enrique Lores, the company's CEO, the rise of hybrid work gives the potential to redefine the paradigm of work that only comes once every generation. The purchase could be completed by the end of 2022; if it fails, Poly will pay $ 66 million.