What’s the point of the Apple iPod from HP?

“What’s the point of a HP-branded iPod? Apple gains additional iPod distribution, marketing resources, and market presence from its iPod partnership with HP. In other words, more stores carry iPods, more television, magazine, and web advertisements mention the iPod name, and more people wind up with iPods. Additionally, as a result of the Apple-HP alliance, iTunes now comes pre-installed on HP’s popular Windows PCs, and HP got to do the legwork to make iTunes compatible with Microsoft’s Windows XP Media Center – the piece of software called HPTunes,” Jeremy Horwitz writes for iPodlounge.

“All of these assets, plus additional cashflow and other behind-the-scenes details that are not immediately apparent, are Apple’s benefits. From HP’s standpoint, the choice to sell iPods has benefits as well. Rather than competing against the iPod and sharing 2-4% market share with the likes of Dell, HP gets to share in potentially windfall profits and publicity from the industry’s leading music platform. It can also develop iPod-compatible accessories, such as printable stickers and printers, and enjoy immediate exposure from Apple if it desires,” Horwitz writes.

To answer a few other common reader questions about the iPod+hp, we note the following.
– HP calls the iPod+hp a “Digital music player” on its packaging.
– It can be formatted for use with a Macintosh, just like any other iPod.
– Its installation CD does not include a Macintosh portion, so you’ll need to download free software from Apple if you want to do a full Mac install, and HP will not provide tech support for Mac-related problems.
– Its box uses apparently identical materials to Apple’s, but with slightly different fonts and no Macintosh markings.
– Photographs on the 40GB unit’s box are Apple’s stock 4G iPod product shot, and an image of a crowd listening to a street band, the drummer using white cartoony iPod headphones connected to an iPod on another panel. The phrase “You are your playlist.” appears on that panel, while the last side is a cursory blue specs sheet. HP’s lifestyle picture for the 20GB unit’s box is a woman rocking out in a room with the iPod’s white headphones, hair flying in the air.

Full article featuring product review and photos here.

17 Comments

  1. what’s the point?

    Easy! Most PC users are ignorant twits and think iPods only work with Macs. After all, there’s a big MAC logo on it right? (sarc–that would be the Apple logo)..

    Seriously, there are probably tons of PC drones that think, “Finally! An iPod that works with the PC market”

    Despite relentless ads from Apple, “Mac + PC” on their iPod ads…

    Oh yeah, I was going to draw the analogy of MS’s Office monopoly, which arguably, was because morons thought you had to buy a MS product to work with a MS Operating System…

  2. Mike hit the nail on the head.
    If it were not for the HP distribution and marketing, Most Windoze users would not have a clue they could use an iPod.
    “You have to have a Mac to use it, right?”
    Oh the poor brainwashed fools…

  3. sMac & Mike:

    I have to disagree. Most of the people I deal with every day are Windows users. Most of them know what an iPod is. Most of them don’t know that HP sells the iPod. In fact, I think that most people out there who know about the iPod, don’t associate it directly with a computer (PC or Mac). The idea of how the music gets on the iPod is almost a secondary thing since they almost never see one actually hooked up to a computer. They are too busy being blown away at how cool it is and how must music it can hold. From a marketing perspective, I think Apple is doing a good enough job of getting across the fact that it works with Windows by stating Windows + Mac on their advertisements.

    The real purpose of HP selling the iPod is so Apple can gain the distribution strength of HP and access to HPs customers for iTunes and QuickTime (lets not forget that piece of the puzzle!). Apple gains access to HPs customer base and HP becomes the #2 seller of mp3 players in 1 quarter with almost zero effort. It truly is a win-win situation for both of them. Would be cool to see other major vendors jump on board. Microsoft would have a cow!

  4. I think it’s the first step on the road to HP manufacturing non-sexy Apple desktops for enterprise.

    I think HP realizes that the tide is beginning to switch and over the next 5 years more and more private companies will be looking for computer options that don’t rely on Windows.

    HP will already have a working relationship with Apple and they have a very good relationship with business customers.

    Apple can benefit from using HPs enterprise channels to distribute “beige box” G5 or even G4 to business customers.

    HP benefits because they’ll continue to maintain sales of hardware as companies switch from Windows PCs to Apple computer.

  5. Random music related thought: what’s become of Rob Glaser and Real? Seems things have been pretty quiet lately from them…are they burning through their remaining cash?

    Also, (and this is genuine curiosity), what has been going in between Apple and the Beatles?

  6. From a mindshare perspective it means Apple is not isolated. Having two big companies such as Apple + HP support the product will instill confidence in consumers. The FUD from M$ and Real has little effect as a result. HP has sales out lets all over the world – in many places that Apple does not.

  7. It would be interesting to see how this would work if it were extended to HP selling HP branded Mac’s.

    Apple would still retain control (like the iPod), and effectively build the standard Mac range (Xserve, PowerMac, iMac, eMac, Powerbook, iBook), & ship them to HP for Apple approved re-branding. This re-branding would mean new enclosure’s new packaging etc.

    Apple would take their cut, get a better distribution channel, and the PC-users would think that they finally have a PC that can run OSX.

    Would this cannabilze existing Mac sales however? Well if it did it wouldn’t matter to Apple – they still get the same cut as from their own hardware (minus the small cut for HP).

    Would it stop people buying from Apple Store’s? Probably, certainly the Windows users, however Apple’s store presence is second to none and I don’t think it would hurt them too much, and Apple’s enclosure’s would always look better then HP’s.

    Would this help Apple’s market share? – certainly.

    Would this help Apple’s profit’s? – debatable.

    Would this be a good or bad idea? – I’m not sure.

  8. it’s almost the end of 2004. Remember waaaay back in January (really not that long ago), that people were saying that the MacWorld San Fran was a “failure” and “boring” and “where’s the 2004 Mac to “celebrate the 20th anniversary of the Macintosh, etc. etc. yadda yadda..

    Bleck..

    What a bunch of whiners a lot of Mac users are! And now look, Apple posts record proffits, stock up how much now? the iMac G5 was late, sure but look at it, it’s another stunner and will sell very well. It’s got some amazing reviews, etc.

    We’re still missing PB G5 but we can’t have everything, we got color iPod screens now at least so people can stop yacking about that…

    The hp iPod is just one more stunner from this year.. we take it for granted now, but who back in 2003 predicted this? Oh yeah, that’s right….

    NO ONE.

    Does anyone doubt that the same people who bitched about the MWSF this year and about the iPod mini (which was “too expensive” and “going to fail”) and “where’s the new iMac G5?????” are going to find something else lame to bitch about next year?

    And what amazing new products has Dell or MS released in 2004? Anyone?

  9. And this is where parochial thinking lets you down.

    At the moment, HP is only selling “its” iPod in the US – because it’s low-hanging fruit.

    However, when the time comes to sell it further afield, HP has a wider distribution channel (over 100,000 outlets globally) and a more consistent global presence than Apple.

    Try and remember that Apple still has huge swathes of the globe where it has no direct representation or direct representation that barely registers when using analog instruments – HP solves that problem.

    That’s the point – here endeth the lesson.

  10. Andy.. whoa whoa whoa.. the question was not, ‘what does Apple get out of it?’.. Apple’s benefits are obvious.. and rich.. QT, iTunes, AAC, iPod deployment etc etc etc..

    The question was, ‘Why would HP go in on this deal?’.. the answer, I suggested might lie in HP’s supposition that there was an untapped market of PC users dying to get a cool iPod, but worried that it wouldn’t work with their PC (believe it or not, Macs are known for being incompatible with.. just about everything ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />.. though that couldn’t be further from the truth)..

    Enderle must have agreed because he thought the HP iPod would swiftly outsell the normal iPod.. which.. also.. works with … PCs…

  11. Mike didn’t hit the nail on the head and is very stereotypical.Alot of PC USERS are looking at apple.I think the deal was made so apple could get more iPods to people who wanted them.They were in high demand,but one company can’t really fill that.I definately think your comments were insulting.

  12. This is the first thing I have seen in an iPod competitor that even comes close to tempting me. (It would not succeed but I could see windows geeks going for it) Being a gadget freak, I like all the functionality that has been built in. Hopefully this should stimulate Apple to even greater development.

    http://www.macworld.com/news/2004/11/19/vtec/index.php/?lsrc=mcrss-1104

    http://www.vtec.co.uk/product/547_635.asp

    Key features that I think Apple should build in to the iPod are: Video out, 13-in-1 card reader with ability to view photos immediately after download from a camera, AM/FM radio (recordable would be nice), built-in mic.

    They could have the elegant music only version and then the totally maxxed out on features version at a premium price.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.