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back to article Lenovo grabs spotlight, hunts for sales uplift after server build shift

Lenovo claimed it has yet to feel the commercial benefit of putting local server assembly into the hands of a contract manufacturer in Europe because the market has “tanked” - the cloud saw to that, an exec has said. The Chinese firm shifted rack and tower production to Flextronics in Hungary from May and will move over more …

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  1. a_yank_lurker

    Wages rising?

    “Manufacturing is still cheap in China,” he told The Reg, “but when you add the cost of logistics, it is actually a lower cost to manufacture and ship locally.” - As the local wages rise, the additional costs of air/sea shipping and duty even up the total costs with local manufacturing. There is a point when the overall cost structure favors local manufacturing.

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    1. Anonymous Coward
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      Anonymous Coward

      Re: Wages rising?

      True, but by the time you react to changes in your cost structure, a following rearrangement can tank the business. Lately there's been a significant drop in ocean shipping costs. How well Maersk and the others react, by scrapping overcapacity, and how quickly can effect the bottom line. When costs go back up, well, you can be whip-sawed.

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  2. Hans 1
    Happy

    The question I ask is, who tursts Lenovo for business solutions after their UEFI debacle ? How can you trust the UEFI is safe ? You cannot!

    Same for Dell and HP .... OpenFirmware, anybody ?

    No ? Window cleaner, you'll be out of a job before the end of 2017 if you do not re-train Linux/OpenSystems ...

    ... Well, optimistic, maybe, seeing as most incompetent Windows experts have risen to IT manager ... none NEVER saw a calculator or accounted for the cost of closed source hardware & software ....

    0 2 Reply
    1. Ashley_Pomeroy
      Reply Icon

      That's great. Hans, what are you views on the merits of local vs Chinese assembly? In the future, which model do you think will prevail? Or will the question become moot?

      Tell us, Hans. You obviously have a wide range of interests. You're selling yourself short by concentrating exclusively on a single topic. A casual observer might conclude that you have a *very narrow focus*, which is a euphemism. What are your thoughts?

      2 0 Reply

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