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The New HP: After the Wedding

Businesses will have less choice, but consumers won't see much change--yet.

Peggy Watt

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With the dust now settling on the Hewlett-Packard and Compaq merger, it's clear that business-system buyers and PDA shoppers will have fewer choices than other consumers will--at least for now.

The business-oriented HP Vectra line and Omnibook notebook product lines will be phased out over the next 12 to 18 months in favor of Compaq's Evo desktop and notebook lines. The HP Jornada handheld brand, meanwhile, is being discontinued in favor of Compaq's stronger IPaq.

Jornada owners are promised technical support and parts repair or replacement under the terms of their warranties (typically one year). Users should call the same tech support numbers as usual, says Mike Larson, an HP senior vice president.

HP has also decided to shelve consumer entertainment devices, including HP's Digital Entertainment Center, a digital receiver and MP3 player introduced last fall. HP officials say the company may reenter that market, perhaps with partners. Service will be available for current owners.

As for consumer desktops, HP plans to maintain both its Pavilion and the former Compaq Presario lines--at least partly because one or the other dominates in overseas markets. Retailers also don't want to lose a good name.

Toni Duboise, desktop PC analyst at market research firm ARS, says she's already observed differences between the Compaq and HP retail lines. HP, she says, has recently expanded its offerings to cater to more budgets than ever before, while Compaq has focused on its build-to-order business via the Web and in-store kiosks. "They're actually more complementary to each other than they've ever been," Duboise says.

But some potential customers, like Jim Dunbar of Colorado Springs, remain wary about the new HP's commitment to provide real choices and support for products after the sale.

"When you buy a PC, you're looking for a company that's relatively stable, that's going to be around, that's going to support the thing," says Dunbar, a computer salesperson who recently decided not to buy an HP system because of his doubts about the merged company's plans. "There's just a lot of things in the press that make you wonder what they're going to do."

HP's Plans

What's Staying:

  • HP Pavilion desktop and notebook PCs

  • Compaq Presario desktop and notebook PCs

  • Compaq IPaq handhelds

What's Going:

  • HP Jornada handheld (immediate)

  • HP Vectra desktop PCs (12-18 months)

  • HP Omnibook notebooks (12-18 months)

  • HP Digital Entertainment Center (immediate)

What's New:

  • Evo D510 Ultra Slim desktop PC

  • Evo D310 desktop PC

  • Evo N800 notebook

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