“Hewlett-Packard’s new chief executive, Mark Hurd, has been described as an execution whiz with a track record of growing and turning around lackluster businesses. Perhaps one of the things he will help HP better execute is its partnership with Apple Computer over the iPod music player,” Lisa DiCarlo writes for Forbes.
“When HP and Apple announced in January 2004 that HP would resell a branded version of Apple’s smash hit product, the iPod, both companies had high hopes. HP’s then-chief executive, Carly Fiorina, said partnering with Apple would provide an opportunity to add value to HP’s ambitious digital entertainment strategy. Apple CEO Steve Jobs said HP would help Apple ‘get iPods and iTunes into the hands of every music lover around the world.’ It hasn’t exactly worked out as planned,” DiCarlo writes. “HP declined to comment for this article, saying that iPod-related news may be forthcoming in the next few months.”
“HP sold about 321,000 iPods in the fourth quarter, while Apple sold 4.58 million; it has sold more than 10 million to date. On the surface, Apple doesn’t seem to need HP to move more iPods,” DiCarlo writes. “HP’s iPod (which is identical to Apple’s) seems to fly in the face of HP’s tagline ‘invent,’ as does the branding of the product ‘Apple iPod from HP.’ Unless it can create the same kind of halo effect for other HP products that Apple has been able to with its products, it’s unclear what the advantages are for HP.”
“For that matter, what are the advantages for Apple? The company was likely attracted to HP because of its broad distribution reach with retailers and its status as a top PC supplier,” DiCarlo writes. “But if it’s not moving as many iPods as Apple hoped, and Apple is selling several million of them each quarter on its own, what’s the point?”
Full article here.
MacDailyNews Take: Exactly. What is the point? As we wrote in our take back on February 9th, “Fiorina got jobbed by Apple CEO Steve Jobs with the ‘Apple iPod by HP’ deal. We actually felt bad for her, seeing her onstage holding up that blueish-grey iPod mockup. Steve must have had a really good laugh after he got the ink on that deal. How could Fiorina justify that deal with HP’s slogan ‘Invent’ plastered everywhere? It was totally ridiculous. Why not just come right out and say, ‘Oh, ‘Invent’ is only a marketing slogan, we don’t really invent anything anymore, silly!'”
Related MacDailyNews articles:
Hewlett-Packard ousts CEO Carly Fiorina, and what was with that ‘Apple iPod by HP’ deal anyway? – February 09, 2005
How many DJs did Dell ship? I’m betting not over 100,000.
I think Apple needs the HP deal to keep going as long as it can… it keeps iTunes on all those HP desktops, and keeps a major competitor from crowding the market with another Microsoft-based PlaysForShit.
How about the “point” being that they could stay number two in the HD based player market as long as they continue the deal. Otherwise, they can create another Dell DJ…
Regardless of whether or not the deal was a “good idea” the point still remains that the iPod is the number one portable digital music player in the world and HP sold more of them than Dell sold of the DJ or than ANYONE had sold of ANYTHING else… and we’re talking about companies that have been in the business for YEARS before HP decided to ship the iPod.
Anybody ever seen an HPiPod?
Are they getting their share or is Apple taking up all the production?
Or maybe the last CEO put it on the backburner knowing that 80% of HP profits come from selling overpriced ink cartridges????
Lots of questions to answer before flaming to conclusions.
“For that matter, what are the advantages for Apple? The company was likely attracted to HP because of its broad distribution reach with retailers and its status as a top PC supplier,” DiCarlo writes. “But if it’s not moving as many iPods as Apple hoped, and Apple is selling several million of them each quarter on its own, what’s the point?”
——————-
Many people got iTunes on their HP and then bought an Apple iPod..
awesome for Apple..shit for HP..
I saw an iPod+HP once.
I do agree, this is a good deal for both companies (in a way). HP is the #2 HDD-based music player in the US (in less than six months, no less).
It, like others have said, prevents HP from becoming a competitor something that Apple doesn’t want and MS would love. Remember for every computer HP ships, the user gets iTunes and the iTMS. The only thing the user would have to fill in is the iPod (if they don’t have one already).
“it’s unclear what the advantages are for HP.”
Hmmm… let me think… hmmmmm, thinking hard Lisa… how about the profit from 321,000 “Apple iPods from HP” in a single quarter? I’m certain that they weren’t selling them at a loss.
That number is a magnitude higher than the number of iPods which were sold by Apple during the first quarters after product release, and look where Apple’s numbers are today.
(Magic word… years) Be patient Lisa.
I just love my 60G iPod Photo
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” width=”19″ height=”19″ alt=”smile” style=”border:0;” /> Those that Apple supply sucks not well..
Changed the speakers though
We have now 10 Mac minis, 3 iMacs and 2 Dual G5´s and xServe will be served next week and there is much more to come.
Some times it is fun to do shopping with 100 000€ ;P
Say what you want. At least one of HP’s new Media Center systems (the M7070) seems to ship with an iPod dock built into the top of it.
And let’s not get all sniffy about HP’s Invent thing. The truly clever thing about the iPod is actually the way iTunes glues everything together. The iPod is a collection of off-the-shelf components (HD by Toshiba and IBM/Hitachi, screen by someone, Parts of the original OS by Pixo. Current controller made by another third-party) wrapped up in a cute case, where the only “real” Apple innovation is the Clickwheel – and that took three years and four product iterations.
How you behave when you’re winning says as much about you as how you behave when you’re losing: I hate to say it, but MDN needs to take stock of the crowing level cause it’s getting a little bit tired.
Did I mention that we ordered printers from Epson?
Should we have ordered those from HP?
Let me know! Tell your opinion here!
The point is that HP ships all their PCs with iTunes.
The point is that instead of Windows Media Player, on HP Media Center PCs, iTunes is the audio interface.
The point is that HP can ship a desktop PC with a built-in iPod dock.
Would HP do any of these things without the iPod deal?
Like, duh! MDN is spot on most things, but really, your distate for Carly makes you miss the obvious.
I agree with NewType and MCCFR and others. In the short term it doesn’t look like either company has much to gain from this deal. But the significance is in the long term. Apple has found a way to increase market share of its iTunes program without compromising its standards. Cooperating with HP also shows the PC-centric world that Apple products can work very well with the PCs.
Regarding HP, since their slogan is “Invent”, this deal shows that HP recognizes the fact that the iPod is the BEST mp3 player out there. They are basically telling people that the iPod is better than anything they could possibly come up with. It’s actually a compliment to Apple. And for the millions of iPod owners that don’t want to buy a Mac, an HP suddenly looks better than a Dell because it offers good support for their iPod. It’s like HP is trying to tell people that they are the “Apple” of the pc world. It’s very good advertising for HP.
I think MDN is missing a few points. Most of them have already been addressed here but my favorite has only been glossed over.
How many iPods did Apple sell due to the fact that HP was selling them too? HP is a popular brand and highly visible so to have them also selling the iPod I think help legitimize it as far as the PC crowd is concerned. Without HP is to much easier to say that it’s just an Apple thing. Don’t forget that Dell sold them too but they didn’t really push them, HP has.
As an Apple user the number one brand I buy other then Apple is HP. If they are going to support me then I’m supporting them.
http://www.macrumors.com/pages/2005/03/20050330155006.shtml
I had a HP printer and the band that moves the printing head wore out. HP doesn’t sell the part (tho some 3rd party people have started providing the 10 dollar part for 50 dollars). So I said screw it and bought a Canon.
MDN seems to think that Steve Jobs conned HP into this deal….and that it was a stupid deal for HP but they were suckers and Steve pulled a fast one over on them.
Since when is more companies selling Apple products a bad idea????
Heck let Sony sell a Sony brand iPod, too. Get more people to get the Apple experience. Windows computer companies endorsing by selling Apple products is only good news for APPLE.
But MDN thinks Steve pulled a fast one on HP.
HP is doing Apple a favor. Plus making a nice profit on all the iPods they sell. MDN would be happy if tomorrow HP would announce they would stop selling ipods and take iTunes off their computers. MDN is a bit confused on this issue.
One Guy– What’s the potential for offering a grant?
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http://www.ipodlounge.com/ipodnews_comments.php?id=6822_0_7_0_C
Too bad Carly got fired, I always thought she was pretty=\
MDN: “Why not just come right out and say, ‘Oh, ‘Invent’ is only a marketing slogan, we don’t really invent anything anymore, silly!'”
Why doesn´t Apple just come out and say, “Oh, we have our computers made in China by the same company that makes computers for Dell, HP, etc. etc.”
Answer for both: Because it is stupid and it shows MDN has no experience in the computer (or any business) industry, just a hobby collector of Apple news links for their fansite.
EEEEEEK! Mac Daily News!
Apple sells HP products in its store!!!! 123 of them!!!
http://store.apple.com/1-800-MY-APPLE/WebObjects/AppleStore.woa/71407/wo/th73TnV7MurH2Y4grpKNAtyI47B/2.0.0.11.1.0.6.5.0.1
Is APPLE unable to invent a simple little printer????
Gasp! Shock.
Yeah….Apple only sold around 1/1,000,000 the number of printers that HP sells….using the MacDNews logic shouldn´t Apple stop selling HP products? to parafraze the headline of this non-news story:
“What’s the point of continuing the selling of ‘HP printers by Apple’ deal?”
Another point that no one has mentioned yet, is that for every HP PC that has iTunes preinstalled, that’s another install for QuickTime as well, since QuickTime is the audio engine for iTunes.
Also, because of the iPod deal, HP is the ONLY major PC manufacturer that has invented a way for iTunes music to play through the Windows Media Center edition interface. If Windows Media Center really starts to take off, at least it won’t be able to completely lock Apple’s iTunes Music Store out.
Also, with regards to the HP “Invent” slogan, I never really took it to mean that HP invents, but that with HP products, it’s customers can invent. Like Apple’s “Think Different”, HP’s “Invent” is directed at customers, not a reflection of what the company does.
I for one would like to see the Apple/HP teamwork foster into something greater. Maybe HP will start selling different models/designed iPods and help broaden the market. The next step after that could be an Apple iMac or Mac mini by HP followed by HP designed PCs using G5 processors running Mac OS X, or maybe Apple designing unique models that HP sells exclusively so as not to compete directly with Apple’s models.
Who knows, the next step after that could be HP selling G5 based blade servers for their existing Blade chassis lineup running Mac OS X. The point is, if a relationship is allowed to develop, the possibilities are countless. If the relationship dies, the possibilities die.
MDN is suffering a little from “not invented here” syndrome from the early days of Apple.
I’m just happy that HP “invented” the idea not to develop their own mp3 player and went with Apple. I think they deserve a patent for it: A method of getting a great mp3 player+music database/shopping app for a PC call Steve Jobs.
HP having the Gwen Stefani model iPod was cool! Bet that impressed those into the music scene of Gwen.
Whoever INVENTED that match up at HP was smart.
And the idea to let HP design their own iPod based on Apple designs is a good idea.
I think MDN is pissed at HP because they got a bad printer or used to work for HP and had a bad experience….
its nothin wrong in selleing “invented” ideas at a good cost……