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Comments by YACCS
Saturday, July 30, 2005

Another of Carly's follies

We needed H-P for what?

Technology Home Circuits Product Reviews How To's Deals

Hewlett-Packard Quietly Ends Deal With Apple to Sell the IPod

Published: July 30, 2005

SAN FRANCISCO, July 29 - It was with great fanfare that Hewlett-Packard announced in January 2004 that it would begin selling Apple's digital music player, the iPod, in a deal that was cast as a major step forward for both companies.

Earlier this week, however, Hewlett-Packard quietly retreated from that deal when it informed Apple it would stop selling the iPod. A spokeswoman for Apple suggested that the move hardly mattered given how minor a role Hewlett has played in the spreading popularity of the iPod.

In the quarter that ended June 30, Apple sold 6.16 million iPods, said Katie Cotton, a spokeswoman for Apple. Hewlett sold fewer than 500,000 units during that three-month period, Ms. Cotton said, accounting for just under 8 percent of all iPods sold that quarter.

"H.-P.'s iPod sales have counted for on average for 5 percent of all iPods sold since the deal was originally struck," she said.

Ross Camp, a spokesman for Hewlett, did not dispute those numbers, but added that "in general our Apple iPod sales met and exceeded our expectations." Asked why the company had stopped selling the iPod, Mr. Camp 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."

The decision, four months into the tenure of Mark V. Hurd, the company's chief executive, represents the pulling of the plug on yet another program begun by Carleton S. Fiorina, the former chief executive who was fired by the board in February.

They make the deal and can't promote it decently.

Would have done better to sell H-P branded Macs.

posted by Steve @ 1:34:00 AM

1:34:00 AM

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