HP kisses Apple iPod goodbye

Colin Dunstan · 07-29-2005, 07:55 PM

After a relationship between Steve Jobs and former HP-CEO Carly Fiorina that lasted just a little over a year and a half, HP has decided to stop reselling Apple branded iPods. According to an Apple spokeswoman, it "doesn't fit with their [HP] company's current digital media strategy. HP declined to say what their strategy is, but confirmed that the company will remain comitted to digital entertainment, which includes selling televisions and multimedia digital entertainment centers. According to HP's original agreement with Apple, it cannot sell another player that competes with the iPod until August 2006.

HP on average accounted for about 5% of iPod sales, which totaled about 6.2 million of the devices, worth more than $1.1 billion in revenue, for Apple last quarter. Consequently, shares of Apple fell $1.15, or 2.6 percent, to close at $42.65 in Friday trading. HP shares gained 13 cents, $24.62.

[via WSJ]

gadgetguru · 07-30-2005, 01:52 AM

Not great.... for HP. It's the right decision, but since HP can't market nor sell it's competing player until Aug. 2006, I think the agreement was terminated too early.

5% of 6.2 million player (ipods sold last quarter) is 310,000 unit. At say, $200 a pop, that still 62 Million of revenue. More than probably most other competing players has...

sUnShInE · 07-30-2005, 08:24 AM

Really too bad for those of us (cough) who have HP iPods. They actually gave you 24 hr service if something went wrong. I somehow doubt they'll keep that going. I wonder about the warranty too, although I think I'm out of it now.

doctorow · 07-30-2005, 08:36 AM

Quote:

Originally Posted by gadgetguru

Not great.... for HP. It's the right decision, but since HP can't market nor sell it's competing player until Aug. 2006, I think the agreement was terminated too early.

5% of 6.2 million player (ipods sold last quarter) is 310,000 unit. At say, $200 a pop, that still 62 Million of revenue. More than probably most other competing players has...

I think it makes sense for HP. They are a technology company not a distributor, so why should they resell someone else's product? They weren't making much money for reselling iPods either, or they wouldn't have stopped the deal.

doctorow · 07-30-2005, 08:36 AM

Quote:

Originally Posted by sUnShInE

Really too bad for those of us (cough) who have HP iPods. They actually gave you 24 hr service if something went wrong. I somehow doubt they'll keep that going. I wonder about the warranty too, although I think I'm out of it now.

According to various sources, HP said it will continue to honor all warranties and service contracts. The HP devices will remain on sale until supplies run out sometime in September.

07-29-2005, 07:55 PM	#1
Colin Dunstan Is papyrophobic! Posts: 1,926 Karma: 1009999 Join Date: Aug 2003 Location: USA Device: Dell Axim	HP kisses Apple iPod goodbye After a relationship between Steve Jobs and former HP-CEO Carly Fiorina that lasted just a little over a year and a half, HP has decided to stop reselling Apple branded iPods. According to an Apple spokeswoman, it "doesn't fit with their [HP] company's current digital media strategy. HP declined to say what their strategy is, but confirmed that the company will remain comitted to digital entertainment, which includes selling televisions and multimedia digital entertainment centers. According to HP's original agreement with Apple, it cannot sell another player that competes with the iPod until August 2006. HP on average accounted for about 5% of iPod sales, which totaled about 6.2 million of the devices, worth more than $1.1 billion in revenue, for Apple last quarter. Consequently, shares of Apple fell $1.15, or 2.6 percent, to close at $42.65 in Friday trading. HP shares gained 13 cents, $24.62. [via WSJ]

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07-30-2005, 01:52 AM	#2
gadgetguru Addict Posts: 214 Karma: 6370 Join Date: May 2003 Location: Asia Device: Tungsten T5	Not great.... for HP. It's the right decision, but since HP can't market nor sell it's competing player until Aug. 2006, I think the agreement was terminated too early. 5% of 6.2 million player (ipods sold last quarter) is 310,000 unit. At say, $200 a pop, that still 62 Million of revenue. More than probably most other competing players has...

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sUnShInE Drama Queen Posts: 784 Karma: 11712 Join Date: Nov 2002 Location: United States Device: Palm Tungsten T\|T3	Really too bad for those of us (cough) who have HP iPods. They actually gave you 24 hr service if something went wrong. I somehow doubt they'll keep that going. I wonder about the warranty too, although I think I'm out of it now.