Quanta Computer, Compal Electronics, and Wistron all have a message for Hewlett-Packard (HP): Big orders or bust. According to a report in Chinese-language Commercial Times, all three Taiwan-based notebook makers are refusing to accept low-gross margin orders from HP in 2011.
The tough stance is an attempt to end the fierce price competition that has been ongoing among notebooks makers since the better part of this year, an official with Quanta said. Quanta is expected to see lower overall notebook shipments in 2011, but better profitability.
So what of HP? The OEM found greener pastures at Flextronics, which accepted the company's low-gross margin orders at quotes lower than Quanta's, the Commercial Times reports.