AI price gouging might have indirectly hit HP's notebook output as supplier reportedly halted shipment
Quanta reportedly paused HP laptop production for a week in a price fight, betting its AI server boom could absorb the hit.
In September 2026, Quanta, a major contract manufacturer for HP laptops, reportedly halted notebook production for about a week. This action was taken after the two companies could not agree on prices, with the dispute focusing on ODM-bought parts like PCBs, batteries, and power chips. Quanta's co-founder and vice chairman, C.C. Leung, is said to have personally ordered the halt. Production resumed once senior HP executives negotiated a cost adjustment that Quanta accepted.
The price hike and subsequent production halt might have indirectly affected HP's notebook output, though there is no official confirmation from either company. Quanta, which builds a significant portion of HP's laptops, has been affected by rising prices for server components, such as GPUs, CPUs, and RAM. However, HP already absorbs most of the memory, CPU, and GPU costs directly. The components Quanta purchases on its own are different and have faced price pressure lately.
Despite the lack of official confirmation, the story highlights the potential consequences of price gouging in the contract manufacturing industry. Historically, contract manufacturers relied on scale to spread fixed costs, and a major account like HP consuming a significant portion of their production capacity made a production halt highly unlikely.
The recent surge in AI demand has changed the dynamics, with AI servers accounting for up to 80% of Quanta's revenue. If HP had raised prices significantly, it could have forced Quanta to reconsider their stance, potentially impacting HP's notebook production in the future.
Written by urgent.news from TechRadar's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
