Do you remember Compaq? Hewlett-Packard got the computer company back in 2002, but it’s kept the brand active as a lower-ranking brand ever since, primarily relegating Compaq to abroad markets (Compaq is especially popular in Asia) and as second-tier personal computers sold on the cheap at warehouse-style stores.

But at present HP is looking to breathe a little new life into the Compaq brand, aligning it not just as a label for ultra cheap computer gear but also as one with mainstream appeal in the United States.

Nowadays the company is declaring the rollout of a line of ultra-inexpensive personal computers, both laptops and desktops, with extreme budgets in mind.
Consider first the Compaq CQ61z , a 15.6-inch laptop with an AMD Sempron CPU, 2GB of RAM, DVD burner, 160GB hard drive, and discrete graphics. Running Windows 7 Home Premium, the machine costs a just about unfathomable $399. That price point probably sounds familiar — it’s the usual cost for your average netbook, which in comparison offers a tiny screen, minimum hard drive, and an ultra-low-power Atom CPU.

With the $400 laptop’s arrival, Compaq desires potential buyers to ask: Why not jump up to a much bigger and more capable system for exactly the same price? I am having a hard time seeing any reason not to. Seriously, it even has a numeric computer keyboard.

Even better bargains abound for desktop shoppers. The magnetic Compaq Presario 4010f has similar specifications (with a 250GB hard drive) and begins at just $309 after a $100 discount. Both systems are available on Windows 7 launch day, October 22.

Compaq’s aggressively cheap hardware — especially the $399 laptop — could have massive ramifications for the computer market. Will netbooks finally feel the pinch that they’ve been giving to standard laptop computers for two years now? Netbook vs Laptop: Which one would you prefer if they have the same price?