Advertisment

HP to stop reselling Apple iPods

author-image
CIOL Bureau
Updated On
New Update

Duncan Martell and Eric Auchard

Advertisment

SAN FRANCISCO: Computer maker Hewlett-Packard Co. will stop selling Apple Computer Inc. iPod portable music players under its own brand, the two companies said on Friday, ending an unusual but short-lived alliance.

Apple said that its bigger rival had decided the iPods did not fit into its strategy. HP's new chief executive Mark Hurd has moved to simplify and streamline the company, and an analyst said iPod sales were not a "huge deal" for HP.

The January 2004 announcement by former HP chief executive Carly Fiorina to resell Apple iPods under the HP name was treated as a milestone for both companies as Apple made an unusual alliance with a rival and HP reached outside itself for a key consumer technology.

Advertisment

But HP iPod sales accounted for an average of only 5 percent of all iPods sold since the two companies struck their deal, according to Apple. HP sold about 8 percent of all iPods in the June quarter, according to Apple's quarterly report.

Under the original deal, HP had agreed not to develop and sell its own digital music player to compete with iPod until August 2006.

"They don't have any plans to put out a competing player," said Shannon Cross, an industry analyst with Cross Research in Short Hills, New Jersey, of HP, who had been briefed by the computer and printing giant on its decision.

Advertisment

"HP has decided that reselling iPods does not fit within the company's current digital entertainment strategy," Apple spokeswoman Natalie Kerris said.

"As a result of this decision, HP plans to stop reselling iPods around the end of September," HP spokesman Ross Camp confirmed.

"The bulk of our strategy remains unchanged with respect to digital entertainment," Camp said of HP's range of televisions, digital cameras, photo printers and other home entertainment gear. He played down the importance of the HP iPods.

Under terms of their partnership, Hewlett-Packard resold Apple's popular music players along with "printable tattoos" that allowed consumers to customize the look of their devices with bright colors and shapes using HP printers.

For now, HP will continue to install Apple's iTunes digital jukebox software on its new desktops and notebook personal computers.

tech-news