Raspberry Pi not affected by Trump tariffs yet while China-tied rivals feel the heat
(2025/04/02)
- Reference: 1743616142
- News link: https://www.theregister.co.uk/2025/04/02/raspberry_pi_not_affected_by_tariff/
- Source link:
Raspberry Pi hasn't felt the sting of US tariffs yet, and having its boards built outside China might give it an edge over rivals, analysts reckon.
According to the financial analyst firm Jefferies Research, Raspberry Pi has now shaken off a channel inventory correction that dented its sales for much of the last year. It says that manufacturers that incorporate Pi devices into their products have now exhausted their stockpiles, and started increasing their orders for more of the hardware.
Jefferies also notes that the low-cost mini-computer maker has not seen any impact so far from the tariffs imposed by Washington. With most other single-board computer makers relying on manufacturing in Asia, particularly China, Raspberry Pi's factory in Pencoed, Wales, could offer a slight edge, provided demand from the US remains steady, it points out.
[1]
This could also change at any time, of course, as the Trump administration's stop-start approach to tariffs, and its shifting criteria for selecting nations, plays havoc with tech supply chains as well as purchasers in America.
[2]
[3]
That channel inventory correction was a key reason Raspberry Pi [4]saw a drop of two percent in its revenue to $260 million (£200 million), plus a fall of 57 percent in pre-tax profits to $16 million (£12 million) for the year ended December 31, 2024.
CEO Eben Upton described 2024 as a "transformative year" for Raspberry Pi, not least because the outfit went public mid-year in an [5]IPO – its initial public offering, or stock-market debut – on the London Stock Exchange.
The IPO in June 2024 has undoubtedly extended awareness of Raspberry Pi's value proposition from the engineering department to the C-suite at major OEMs
"The IPO in June 2024 has undoubtedly extended awareness of Raspberry Pi's value proposition from the engineering department to the C-suite at major OEMs," Upton said in a statement. (OEMs being original equipment manufacturers, the makers of products you and I buy that incorporate components like Pi devices.)
Going public raised $180 million (£140 million) to support the Raspberry Pi Foundation, and £31 million ($40 million) in funding for the company itself.
[6]
"As our platforms and solutions evolve," Upton continued, "we aspire to become the compute partner of choice for these companies, allowing them to outsource the intelligence element at the heart of their products while retaining control of application-specific design and engineering, delivering enhanced performance, functionality and efficiency in their end product."
Jefferies notes that Raspberry Pi launched 22 new products in 2024, including the 2GB Raspberry Pi 5, the Compute Module 5, the RP2350 second-generation microcontroller, the Pico 2, and accessories including the AI Kit and AI camera.
Post-IPO, Raspberry Pi is also finding it easier to get access to decision makers in larger industrial operations, supporting its direct-to-OEM strategy to generate high volume industrial IoT contracts.
[7]
This is acknowledged by Upton, who said, "I am confident that we will continue to see gradual improvements in end-demand during the current year and increased traction with direct-to-OEM engagement, effectively complementing our reseller and licensee channels."
[8]Political poker? Tariff hunger games? Trump creates havoc for PC industry
[9]Raspberry Pi RP2350 microcontroller now available to mere mortals
[10]Raspberry Pi launches CM4 variant that laughs in the face of frostbite
[11]Raspberry Pi Power-over-Ethernet Injector zaps life into networks lacking spark
Given the longer cycle time involved in the sales, development and ramp-up of products, Jefferies expects new direct-to-OEM contracts to make a limited contribution to revenue this year, but a bigger payoff in 2026 and beyond.
So far this year, Raspberry Pi has launched a [12]16GB Pi 5 , a [13]Pi Compute Module 4 variant with an extended operating temperature range, the [14]Pi RP2350 microcontroller , and a [15]Power-over-Ethernet Injector . ®
Get our [16]Tech Resources
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[4] https://investors.raspberrypi.com/reports
[5] https://www.theregister.com/2024/06/11/raspberry_pi_stock_surges_after/
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z-2zeh3ezlDjyunEIgggMAAAAAY&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
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[8] https://www.theregister.com/2025/03/19/tariffs_tech_channel_uncertainty/
[9] https://www.theregister.com/2025/03/18/raspberry_rp2350_microcontroller_now_available/
[10] https://www.theregister.com/2025/03/05/raspberry_pi_extended_temperatures/
[11] https://www.theregister.com/2025/03/24/raspberry_pi_poweroverethernet/
[12] https://www.theregister.com/2025/01/09/the_ultimate_pi_5_arrives/
[13] https://www.theregister.com/2025/03/05/raspberry_pi_extended_temperatures/
[14] https://www.theregister.com/2025/03/18/raspberry_rp2350_microcontroller_now_available/
[15] https://www.theregister.com/2025/03/24/raspberry_pi_poweroverethernet/
[16] https://whitepapers.theregister.com/
According to the financial analyst firm Jefferies Research, Raspberry Pi has now shaken off a channel inventory correction that dented its sales for much of the last year. It says that manufacturers that incorporate Pi devices into their products have now exhausted their stockpiles, and started increasing their orders for more of the hardware.
Jefferies also notes that the low-cost mini-computer maker has not seen any impact so far from the tariffs imposed by Washington. With most other single-board computer makers relying on manufacturing in Asia, particularly China, Raspberry Pi's factory in Pencoed, Wales, could offer a slight edge, provided demand from the US remains steady, it points out.
[1]
This could also change at any time, of course, as the Trump administration's stop-start approach to tariffs, and its shifting criteria for selecting nations, plays havoc with tech supply chains as well as purchasers in America.
[2]
[3]
That channel inventory correction was a key reason Raspberry Pi [4]saw a drop of two percent in its revenue to $260 million (£200 million), plus a fall of 57 percent in pre-tax profits to $16 million (£12 million) for the year ended December 31, 2024.
CEO Eben Upton described 2024 as a "transformative year" for Raspberry Pi, not least because the outfit went public mid-year in an [5]IPO – its initial public offering, or stock-market debut – on the London Stock Exchange.
The IPO in June 2024 has undoubtedly extended awareness of Raspberry Pi's value proposition from the engineering department to the C-suite at major OEMs
"The IPO in June 2024 has undoubtedly extended awareness of Raspberry Pi's value proposition from the engineering department to the C-suite at major OEMs," Upton said in a statement. (OEMs being original equipment manufacturers, the makers of products you and I buy that incorporate components like Pi devices.)
Going public raised $180 million (£140 million) to support the Raspberry Pi Foundation, and £31 million ($40 million) in funding for the company itself.
[6]
"As our platforms and solutions evolve," Upton continued, "we aspire to become the compute partner of choice for these companies, allowing them to outsource the intelligence element at the heart of their products while retaining control of application-specific design and engineering, delivering enhanced performance, functionality and efficiency in their end product."
Jefferies notes that Raspberry Pi launched 22 new products in 2024, including the 2GB Raspberry Pi 5, the Compute Module 5, the RP2350 second-generation microcontroller, the Pico 2, and accessories including the AI Kit and AI camera.
Post-IPO, Raspberry Pi is also finding it easier to get access to decision makers in larger industrial operations, supporting its direct-to-OEM strategy to generate high volume industrial IoT contracts.
[7]
This is acknowledged by Upton, who said, "I am confident that we will continue to see gradual improvements in end-demand during the current year and increased traction with direct-to-OEM engagement, effectively complementing our reseller and licensee channels."
[8]Political poker? Tariff hunger games? Trump creates havoc for PC industry
[9]Raspberry Pi RP2350 microcontroller now available to mere mortals
[10]Raspberry Pi launches CM4 variant that laughs in the face of frostbite
[11]Raspberry Pi Power-over-Ethernet Injector zaps life into networks lacking spark
Given the longer cycle time involved in the sales, development and ramp-up of products, Jefferies expects new direct-to-OEM contracts to make a limited contribution to revenue this year, but a bigger payoff in 2026 and beyond.
So far this year, Raspberry Pi has launched a [12]16GB Pi 5 , a [13]Pi Compute Module 4 variant with an extended operating temperature range, the [14]Pi RP2350 microcontroller , and a [15]Power-over-Ethernet Injector . ®
Get our [16]Tech Resources
[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Z-2zeh3ezlDjyunEIgggMAAAAAY&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
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[4] https://investors.raspberrypi.com/reports
[5] https://www.theregister.com/2024/06/11/raspberry_pi_stock_surges_after/
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z-2zeh3ezlDjyunEIgggMAAAAAY&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z-2zeh3ezlDjyunEIgggMAAAAAY&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[8] https://www.theregister.com/2025/03/19/tariffs_tech_channel_uncertainty/
[9] https://www.theregister.com/2025/03/18/raspberry_rp2350_microcontroller_now_available/
[10] https://www.theregister.com/2025/03/05/raspberry_pi_extended_temperatures/
[11] https://www.theregister.com/2025/03/24/raspberry_pi_poweroverethernet/
[12] https://www.theregister.com/2025/01/09/the_ultimate_pi_5_arrives/
[13] https://www.theregister.com/2025/03/05/raspberry_pi_extended_temperatures/
[14] https://www.theregister.com/2025/03/18/raspberry_rp2350_microcontroller_now_available/
[15] https://www.theregister.com/2025/03/24/raspberry_pi_poweroverethernet/
[16] https://whitepapers.theregister.com/
Vadheterdu
Thank you for spelling out what OEM means, instead of just tossing another TLA over the fence for the readers to puzzle over.
Jargon
diodesign
I don't mind acronyms that everyone recognizes but for some reason OEM really annoys me. I think it's because 'manufacturer' is a perfectly good word. And spelling it out doesn't really clarify the situation, so you have to explain it too.
C.
Ian Johnston
It was a nice thought, but the explanation given - "OEMs being original equipment manufacturers, the makers of products you and I buy that incorporate components like Pi devices." - was wrong.
OEMs are companies who make components which other companies incorporate in their products, so Raspberry Pi are an OEM for other companies just as Lucas were an OEM for British Leyland and Samsung is an OEM (screens) for Apple. They manufacture the original equipment, you see.
mark l 2
I think Jefferies Research might have wanted to wait a bit longer before publishing their statement, since the Orangutan has now said there will be a 10% tariff on ALL imports to the US, so I don't see how Raspberry PI not being manufactured in China is going to avoid the blanket tariff of 10% on imports for goods coming from the UK/
Remember Trump voters how he promised to get prices of stuff down? Hows that going btw?
(Involuntary Shudder)
"...undoubtedly extended awareness of Raspberry Pi's value proposition from the engineering department to the C-suite at major OEMs,"
Whenever I see this sort of thing coming out of a company I usually try to run away. Everyone knows the RPi as a range of cheap general purpose computers that are useful for a multitude of projects. The bad news is that that's just what they are and attempts to make a bigger, badder, bolder RPi just end up making a mediocre PC. Unfortunately one of the problems with going corporate is that sales growth becomes paramount leaving the CEO's stuck between commodity 'cheap as chips' boards that have extensive competition** and trying to find uses for pseudo-PCs in a saturated market.
Sometimes its a good idea to just remain small with a steady business.
(**When your product is almost free them tariffs have minimal impact.)