Will HP's computer division spin-off lead to plummeting PC prices?

While everyone waits to find out if HP is able to sell its PC division as part of its spin-off campaign, what will the company do with the PCs it's already produced and has ready to sell? If your guess is to drop prices until it's moved its inventory, you may be guessing right. And the ensuing pricing chaos is cause for worry among HP's former competitors in the space.

According to DigiTimes, other PC manufacturers are concerned that the fire-sale pricing HP started offering on its TouchPad tablet will spread to its computer lineup, depressing prices in the all-important fourth quarter. Demand hasn't exactly been high to begin with, as Acer already has inflated European inventories that led it to drop prices.

The "fierce price competition" (DigiTimes' words) will crush bottom lines for vendors, but could be a boon for consumers waiting to score a good deal on a new laptop. But the timing will also be poor for the launch of Intel's Ultrabook notebook platform, which counted HP as one of its major manufacturers. Ultrabook pricing is already a concern, and cheaper portables could entice buyers to steer away from the $1,000 price tag Intel has been floating for the super-slim laptops.

Would you still buy an HP computer knowing that its PC division may wind up with another company? Let us know in the Comments section.