HP to ditch HP Compaq brand, keep Compaq for low-end products

Posted on Thursday, May 24 2012 @ 12:41 CEST by Thomas De Maesschalck
HP announced that sometime in 2013, it will completely eliminate the "HP Compaq" branding. The firm will continue to use the Compaq brand, but only for entry-level PC products.
That's not a drastic change — Compaq has long been relegated to the lower rungs of HP's consumer-facing product portfolio — but historically, those products have often been little more than reskinned HP models. Starting next year, we're told they'll bear the Compaq name alone and will be members a dedicated line of "basic" PCs at "entry-level pricing."

Compaq — the storied PC brand that HP acquired in 2002 — has been little more than an afterthought for HP in recent years, its divisions and intellectual property having long been absorbed into the mothership, so this could prove to be a meaningful rebirth for the marque at retail. It won't be free, though: HP noted in its earnings filing with the SEC today that the branding move would lead it to take a $1.2 billion "impairment charge" in the next quarter. It's said to be a necessary accounting move associated with a change in the way the company will use one of its brands — a material asset — and there's little question that "Compaq" means less to consumers today than it did before the acquisition a decade ago.
Source: The Verge


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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