Hewlett-Packard (HP) will stop reselling all models Apple iPods portable music player, the Wall Street Journal (WSJ) is reporting. According to the report, both HP and Apple have confirmed that HP will begin phasing out sales of the iPod immediately through all of its retail partners. According to the WSJ, HP notified its retail distributors of the “Apple iPod by HP” phase-out on Thursday. The journal story quoted HP spokesman Ross Camp who said that iPod sales had been successful, but that company determined “the iPod doesn’t fit in with our digital entertainment strategy.”
“They’ve decided that reselling iPods doesn’t fit with their company’s current digital media strategy,” Apple spokeswoman Katie Cotton said, according to the Journal’s report. Full article (paid subscription required) here.
“Probably more astonishing to the casual gadget fan would be the notion that HP has a digital entertainment strategy. Much as we appreciate the super-talented HP support people who can resurrect a 3Si printer from the hardware graveyard, we just can’t see them dropping deep trance mixes on a crowd of ravers at 3 am,” David Utter writes for WebProNews. Full article here.
In a conflicting report from The Associated Press, which could possibly be a misquote, Apple says that it pulled the plug, “Apple has decided that reselling iPods does not fit within the company’s current digital entertainment strategy,” Apple spokeswoman Natalie Kerris said. “As a result, HP plans to stop reselling iPods by end of this September.” Full article here.
“‘I can confirm we have exited the relationship,’ Hewlett-Packard spokesman Ryan Donovan said. He could not immediately provide further details,” Reuters reports. Full article here.
Ina Fried reports for CNET, “HP spokesman Ross Camp said that HP’s ‘current plan’ is to continue including Apple’s iTunes software on its desktop and notebook PCs as it has done since last year. Under the terms of HP’s deal with Apple, the computer maker cannot develop or market a rival digital music player to the iPod until August 2006.” Full article here.
MacDailyNews Note: This story is developing, we’ll keep you up-to-date. In the most recent quarter, according to Apple CFO Peter Oppenheimer’s comments in the most-recent Apple financial results conference call on July 13, the “Apple iPod by HP,” held nearly 8% of the US market for MP3 players — making HP #2 in the digital music player market. Apple holds around 75% of the US market currently. As recently as the first of July, we reported that HP had planned to add the “Apple iPod shuffle by HP” to its lineup. HP has a new CEO, Mark Hurd, and the “Apple iPod by HP” was former HP CEO Carly Fiorina’s deal.
[Updated, 3:55pm EDT: Added Reuters and AP quotes and links to articles.]
[Updated, 4:20pm EDT: Added CNET quotes and links to article.]
Related MacDailyNews articles:
Analyst: Hewlett-Packard may want to make their own MP3 music players – July 29, 2005
HP adds ‘Apple iPod shuffle from HP’ to digital music player line – July 01, 2005
Hewlett-Packard adds ‘Apple iPod mini from HP’ to iPod digital music player lineup – June 02, 2005
Hewlett-Packard expands branded iPod lineup, announces ‘Apple iPod photo from HP’ models – April 12, 2005
Hewlett-Packard adds ‘iPod dock holder’ to latest Media Center desktop – March 31, 2005
What’s the point of continuing the ‘Apple iPod by HP’ deal? – March 30, 2005
Hewlett-Packard ousts CEO Carly Fiorina, and what was with that ‘Apple iPod by HP’ deal anyway? – February 09, 2005
Apple, Hewlett-Packard debut new iPod television commericals – August 30, 2004
Hewlett-Packard-branded Apple iPod to debut Friday – August 26, 2004
Why Hewlett-Packard took Apple’s iPod shortcut – February 02, 2004
I smell money from Micro$oftopoly. Lends a whole new meaning to Microsoft Money.
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Don’t you think it’s a little late?
2003
gates: nonono.. don’t worry ballmer, let’s wait until they really get a nice marketshare.. i still believe in playsforsure..
2004
gates:okay it hasn’t happened yet.. we’re still waiting for the backlash
2005
gates:ballmer, we’ve been leveraging this windows monopoly for a while now, forcing people to use WMP.. what am I missing here.. iTunes should be gone by now…
ballmer: everyone has a price.. let’s get HP on the phone
HP will never sell as many MP3 players as they did with the HP iPods. Just like Dell they will find out that competing against Apple in MP3 players is less profitable than working with them.
Yes, an interesting idea that was posted above — why doesn’t HP just sell iPods, thereby increasing profits by dropping support costs.
I suppose they will lose a bit of sale of those smart shoppers who realized that HP was offering much better support terms than Apple, but otherwise they can continue to sell any iPod they want at current prices.
I don’t think it is Apple’s idea. It makes sense for HP to do this for Biz reasons not financial.
No matter how good there support terms where they are not the same as being able to bring in an iPod to a retailer for service. Apple stores won’t take HP ipods.
Radio Shack is going to be carrying Apple computers soon, what and when i don’t know. But a few Radio Shack guys said it was coming.
>Radio Shack is going to be carrying Apple computers soon, what and when i don’t know. But a few Radio Shack guys said it was coming.>
Oh, great, now we’ll have the real experts selling iPods or whatever they’re called at the Shack.
Radio Shack guy, “Do you use them to fix fuses, or what?”
“We’re running a special deal on spools of coazial cable when you buy an Airport Express.”