HP/COMPAQ: Compaq to be commercial PC brand

Both Hewlett-Packard's Pavilion and Compaq's Presario PC lines will survive the companies' merger, according to information posted on HP's Web site on Tuesday, its first day of operating as a combined company.

While both companies' brands will be used on consumer desktops and notebooks, Compaq's will reign alone in the commercial sector, but on all other product lines and services, HP will be the corporate brand, according to information from HP's Personal System Group found at http://thenew.hp.com/country/us/eng/mergerinfo/fact_sheet_psg.html.

Commercial PC sales are an area in which HP has openly admitted weakness since announcing its intention to acquire Compaq. HP made "inadequate" progress toward developing a direct distribution capability, doing only 15 percent of its commercial business through that channel compared to Compaq's 60 percent, HP said in a letter to shareholders mailed in mid-February.

HP plans to hold a press conference Tuesday afternoon to discuss its new operational plans.

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