Originally Posted by
KarmaKiller 
Having worked in CS for HP for a year, I can pinpoint the exact issue. The customer service, and more specifically the call centers located in the Philippians and India. I can't tell you how many times I would get a call from an angry customer because a foreign agent had charged them 3x for the same thing, or sell them something that would supposedly fix an issue, and it of course didn't.
It all really boiled down to the managers and trainers. Those who were trained and managed well did very well there, made customers happy, and in general most people had a positive experience. But with the lack of accountability the foreign agents had, they could charge you for something you didn't need, then put you on hold for over an hour hoping the customer would just give up and hang up.
On top of that, the way they treated the employee's that actually cared about their jobs was terrible. With the terrible pay, and the way they hide behind corporate rules, I can see exactly why they are going down the drain.
That said, they do have some really nice notebooks that I still recommend after working there. Printers are very hit and miss with them, I've had some really good experiences, and some really terrible ones.
EDIT:
Also does the massive loss they took on the Touchpads factor into this? If so, then that makes much more sense. I believe the cost of production for those was slightly over $275, and with HP dropping them to $199, I can see how they could have taken the massive hit.