Palo Alto Networks is a US-based manufacturer that relies on a global supply chain. Some components we import for final manufacturing in the United States have been impacted by recent tariffs. As a result, we will be raising prices on our hardware products by 5%, effective November 1, 2019.
We remain committed to manufacturing our hardware products in California. We have taken this approach to ensure the integrity of our products, as we aim to deliver on our vision of a world where each day is safer and more secure than the one before.
Like most high-tech manufacturers, we use a global supply chain to keep our prices competitive. Certain components are sourced from companies in China due to a lack of competitive alternatives in other countries. After absorbing ongoing and escalating tariff costs to date, we are increasing the cost of our hardware manufactured in the United States.
We have and will continue to evaluate changes to our global supply chain to minimize the impact of tariffs while upholding our value to our customers and partners. We continue to evaluate our approach, and modify as necessary, as official changes in U.S. government policy evolve.