What the hell? This is a serious change in direction. HP was supposed to transform its PC division into a higher margin business by more aggressively pursuing the luxury market. Also the PC division was part of the WebOS master plan by bundling it with every new PC by the end of the year.
What does this mean for HP's consumer business? What does it mean for WebOS? It seems like Leo is returning to his SAP comfort zone which looks a lot more like IBM than Apple.
Even though the article does not mention Compaq, I can see the new company inheriting the brand name instead of sharing HP. But just how much of the consumer business do they plan to abandon?