While HP reports Q2 results with a revenue of $30.7 billion and confirmed that it cutting of some 27,000 jobs in next two years time. The company also confirmed that by the next year, it will be ending “HP Compaq” branding, means Compaq name will live on for “basic computer at entry-level” only. Here’s HP’s full statement on “HP Compaq” branding:
This non-cash charge relates to a change in how HP plans to use the “Compaq” trade name in its branding strategy going forward. As part of our focus on simplifying our marketing and customer experience, beginning in 2013, HP will change how it uses the “Compaq” brand for certain computing products. We will continue using the Compaq brand, but it will be used for basic computing at entry-level pricing. In the past, we have used the jointly branded name “HP Compaq” to describe certain computing products, but that approach will be discontinued. As a result of these changes, accounting rules compel us to change the carrying value of the “Compaq” brand, resulting in what is called “goodwill impairment”.