HP ends deal with Apple, stops selling iPods |
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Published
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Sun, 31 Jul 2005 03:05
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SAN FRANCISCO: Hewlett-Packard Company is ending its deal with Apple Computer Inc to sell the latter's iPod music players under the HP brand.
The two companies had reached the milestone deal in January 2004, when H-P was under the regime of CEO Carly Fiorina. However, the business did not pick up as expected and H-P iPods accounted for hardly 5 per cent of the total sale of the digital music players. The deal had a clause under which H-P cannot develop and sell its own digital music players in competition with iPods until August 2006.
An Apple spokesperson said, "HP has decided that reselling iPods does not fit within the company's current digital entertainment strategy. As a result of this decision, H-P plans to stop reselling iPods around the end of September."
In the quarter ending 30 June, Apple had sold 6.16 million iPods, the spokesperson said, adding the share of H-P was less than 500,000 units during this period. "H.-P.'s iPod sales have counted for on average for 5 percent of all iPods sold since the deal was originally struck."
H-P, under its new CEO Mark Hurd, has restructured its management and its product range -- hardware, software and computer services. The decision on iPods could be in line with this new strategy, say analysts.
The company will, however, continue to provide Apple's iTunes digital jukebox software on its desktops and notebook personal computers.
An H-P spokesperson said "basically we determined that reselling the iPod did not fit within our current digital entertainment strategy, but we're not providing any other details on that decision right now".
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