How Stoppage Of Chromebook 11 Will Impact Hewlett-Packard Company (NYSE:HPQ) Financials?
The personal computer, laptop and computer server hardware maker Hewlett-Packard Company (NYSE:HPQ) has come out with a stop sales announcement for its recently launched Chromebook 11 laptop. The computer hardware maker had joined hands with Google Inc. (NASDAQ:GOOG) to market its flag ship laptop and was hoping to capture back some of its lost customer base.
In a joint announcement yesterday, Hewlett-Packard Company (NYSE:HPQ) & Google Inc. (NASDAQ:GOOG) indicated that they have asked retailers like “at Best Buy Co., the Google Play Store, Amazon.com Inc. and others” to immediately stop the sales of the Chromebook 11 laptop and shift out the said product from its shelves to a designated warehouse till further notice from the laptop manufacturer.
The halt sale decision by Hewlett-Packard Company (NYSE:HPQ) and backed by Google has been necessitated due to complaints by customers of Chromebook 11 that the power charger which was provided by HP along with the Laptop had been overheating while being used to charge the laptop. As the number of complaints about the overheating chargers started to escalate, HP decided to issue the stop sale notice to its distributors till its technicians figure out the issue with the laptop chargers.
Commenting about the current situation, Hewlett-Packard Company (NYSE:HPQ) officials have been quoted to have said that; “We are working with the Consumer Product Safety Commission to identify the appropriate corrective action, and will provide additional information and instructions as soon as we can. We apologize for the inconvenience.”
HP has reassured the customers of Chromebook 11 that the laptop itself is very safe and they can charge the same using any other compatible warranty covered charger. While the stop in sales might not be in place for long, It would still leave a lot of red faced executives in HP. The firm has not yet indicated when the sales embargo will be lifted.