Janus Henderson Investors recently commented on the varying impacts of tariffs on software and hardware companies. According to their analysis, software companies might experience minimal effects due to their reliance on distributed labor rather than physical assets. In contrast, hardware companies are likely to face significant challenges.
Hardware production often occurs outside the United States and depends heavily on components like semiconductor chips and wafers. These components are primarily manufactured in the Asia-Pacific region and then shipped to Mexico for assembly. As a result, the newly announced tariffs are expected to have the most pronounced impact during the assembly phase.
The firm anticipates that major end-market manufacturers such as Dell and HP will be more severely affected by the tariffs compared to their suppliers. This is due to their reliance on imported components for their hardware products.
