Asus anticipates price increases as it shifts production from China
Asus may have to offload some of the costs to its clients.

Although Asus has been proactively preparing for potential geopolitical tariff changes, it warned that it may have to increase its prices later this year as it sets up new production facilities outside China.
"We will try to limit these costs to within a reasonable level. However, as we make further adjustments to production lines, it may become possible that we need to offset some of these costs to our clients," an Asus co-CEO said at the company's earnings conference call with investors and financial analysts.
The Asus executive continued, "And right now, we are seeing that some brands are already starting to make adjustments to their retail prices to cover their costs. But for Asus, we will do our best to limit the impact of these changes for our customers, we will try to maintain our offer as the most competitive in terms of both service quality and pricing."
Production Shift Away From China To Avoid U.S. Tariffs
To avoid tariffs expected to be imposed by the new U.S. government, makers of PCs and computer components are shifting production away from China. Large PC makers, such as Dell and HP, have been turning their production to other countries for years now and have resilient supply chains that can at least lower the impact of tariffs. Other PC makers are turning their capacities now. However, shifting takes time, so some tariffs must be paid. Furthermore, setting up new production capacity costs money, impacting companies' profit margins or prices for the end-user.
Asus primarily plans to minimize customer impact by proactively managing tariff effects. Specifically, Asus intends to absorb impacts internally by adjusting production and inventory management strategies (e.g., shifting manufacturing locations globally).
Maintaining pricing competitiveness is a priority, indicating that potential price increases would be carefully considered and kept minimal. However, Asus acknowledged that if tariff costs become significantly high or persist, they may partially pass some costs to customers, but only to the extent necessary.
"We are seeing that some brands are already starting to make adjustments to their retail prices to cover their costs," the co-CEO said. "But for Asus, we will do our best to limit the impact of these changes for our customers, we will try to maintain our offer as the most competitive in terms of both service quality and pricing."
Stay On the Cutting Edge: Get the Tom's Hardware Newsletter
Get Tom's Hardware's best news and in-depth reviews, straight to your inbox.
In short, Asus will prioritize maintaining competitive pricing, potentially accepting some margin pressure in the short term. Still, it does not rule out limited price adjustments if tariff impacts become significant.
Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.
-
Jagar123 I don't think Asus has ever been price competitive. Sounds like they are lying through their teeth.Reply -
TheSecondPower Tell me on the product page where a product is made and I might be willing to pay more for it.Reply -
daworstplaya
^This! Asus over charges for everything. Their GPU pricing is attrocious.Jagar123 said:I don't think Asus has ever been price competitive. Sounds like they are lying through their teeth. -
krr711 It looked like they already overshot their prices in case the tariffs went from 25% to 40%! But Asus hasn't raised prices yet? Right? Mercedes-Benz prices with Nissan quality. They aren't building any new plants. They are shipping them in shipping containers to be placed in boxes in Alabama and we could choose not to play their game.Reply -
systemBuilder_49 It is said that a lot of these companies just move production to Vietnam which has a friendly communist government. They move all the equipment from China and they even move the employees from China who all get work permits in Vietnam. All the profits go back to China and Trump is made a fool but it won't be the first or the last time...Reply -
jesselafantaisie What a joke asus most expensive gpu brand in Canada 5070ti tuf is same price as 5080FE and it's not even their top model. Which is 100$ more than the best model on bestbuy canada msi vanguard 5070ti.Reply -
punkncat krr711 said:But Asus ...(snip)... They aren't building any new plants. They are shipping them in shipping containers to be placed in boxes in Alabama and we could choose not to play their game.
Can you please provide a reference to this statement?