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CNET: HP, Apple harmonize on iPod

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By Dennis Lloyd

Publisher, iLounge
Published: Thursday, January 8, 2004
News Categories: iPod

“‘Apple will manufacture the player, which will not have the iPod name but will have the same design and features as Apple’s third-generation iPod players, Phil Schiller, senior vice president at Apple, said in an interview. Also, the HP music player will come in “HP Blue,” he said.

“The way we look at it, HP will be reselling an iPod device,” said Schiller, who noted that the device will display the Apple logo at start-up and will work with all of the accessories made for the white-hued Apple varieties. [...]

The deal with HP involves only the traditional iPod design and not thenew iPod Mini models, which use a 1-inch hard drive that has 4GB of storage, Schiller said; though, he added, that’s “obviously something we can look at in the future.”

Schiller would not say whether Apple may look to craft similar deals with other computer or electronics makers. While that part of the deal is not exclusive, Schiller said HP’s promotion of the iTunes Music Store through its PCs is a “multiyear, exclusive” deal.”

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Comments

1

i wonder what the price will be…

Posted by steve jobs on January 8, 2004 at 12:44 PM (PDT)

2

does anyone else think this makes Apple look like HP’s #####?

Posted by jon on January 8, 2004 at 12:47 PM (PDT)

3

not at all jon… it makes HP look like Apple’s #####.

HP is the one needing to “borrow” a music store, HP is the one needing to “borrow” a player.

Why?

Because the 2nd largest manufacturer of PCs in the entire world is admiting they can’t top Apple’s product!

Posted by Dave on January 8, 2004 at 1:34 PM (PDT)

4

Who care’s who looks like what.  It’s all good for Apple. 

Boy do I hate dumb comments.

Posted by The Raven in USA on January 8, 2004 at 1:58 PM (PDT)

5

Having read the article, it’s basically a home run for Apple as all HP Pc’s will come loaded with iTunes, now that’s alot of desktops along with hopefully a lot of HP Ipod’s (should we call ‘em Hipods or just Hipos?). Apple have a cross platform application that works well and is a must have item, so why not go forth and multiply, I bet Dell wish they had thought of that. My only concern is for the dark destroyers lurking over in Redmond.

Posted by glad1959 on January 8, 2004 at 2:25 PM (PDT)

6

What this shows is that HP has the intelligence to make a strong alliance with the market leader.  Why try to reinvent the wheel when you can leverage what is already the superior product.  I think this will bode very well for windows ipod users as the windows integration is bound to improve and it all good for Apple’s bottom line.  It also adds legitimacy for Apple in the windows world.

Posted by adam on January 8, 2004 at 2:27 PM (PDT)

7

What this shows is that HP has the intelligence to make a strong alliance with the market leader.  Why try to reinvent the wheel when you can leverage what is already the superior product.  I think this will bode very well for windows ipod users as the windows integration is bound to improve and it all good for Apple’s bottom line.  It also adds legitimacy for Apple in the windows world.

Posted by adam on January 8, 2004 at 2:27 PM (PDT)

8

STUPID! I think it’s a very dumb move on Apple’s part…they will be competing with themselves. HP should design their own crappy hardware…

Posted by mongoos150 on January 8, 2004 at 2:28 PM (PDT)

9

Sorry for the double post.

Posted by adam on January 8, 2004 at 2:29 PM (PDT)

10

mongoos150:

HP is LICENSING from Apple. This means for every HP-branded mp3 player, Apple gets money. And since HP-mp3 users will be using iTunes, Apple will have an even larger user base for the iTunes store. Increasing their market share seems like a very unstupid move to me.

Posted by steeef on January 8, 2004 at 2:47 PM (PDT)

11

I wonder.  Can Apple keep up with say, an extra million tech support phone calls a year?  The extra returned units?  The production of an extra million ipods, while maintaining quality control? (Apple has had its share of qc issues with the pod as it is)

I also wonder.  Does this mean that Apple doesn’t really sell many ipods directly, through their stores and website?  Seems to me, if the demand via direct sale was large enough, there’d be no reason to seek other sellers for rebranding, as the price of an iPod to HP is probably 10%-  lower than retail, perhaps less…money which Apple obviously pockets when selling directly. I’ll bet HP’s per unit cost is lower than Best Buy’s too. 

If so, it seems odd to me that Apple would be interested in this deal.  There could be a strain on the manufacturer to keep up with production, (weren’t folks recently complaining about ipods being sold out for the holidays?) a strain on the support staff,  and less profit than selling directly. 

If I were Steveo, I might have spent my money and energy putting up Apple owned iPod kiosks in malls, department stores and airports, and Apple Express Stores in strip malls. 

But that’s just me.

rk

Posted by mcdj on January 8, 2004 at 2:52 PM (PDT)

12

I’m really suprised as to how far Apple has gone with iPod and iTunes. Is this perhaps the first time Apple has succeeded on both platforms?

Posted by Fiddytree on January 8, 2004 at 2:57 PM (PDT)

13

This is market share, people. Apple gets to put iPods (sorta) in more pockets, and iTunes on more PC desktops. It’s a good business deciscion, and to be honest, I’d rather own a HPod than an iPod mini.

Posted by UTEP_MinerPod on January 8, 2004 at 3:01 PM (PDT)

14

The weirdest thing of all about this hPod is that they will be selling it in blue. This is weird cause their new range of PCs are all in Apple ripoff white plastic. The iPod will match much better than the hPod - I guess they will have to repaint the PCs blue.

Posted by jackson on January 8, 2004 at 3:13 PM (PDT)

15

mcdj,

With every taking under of business alliances, changes have to be made.  Apple is a big company, and I’m sure they’re been hammering this out for a long time.  Its not a simple thing.

I’m sure it couldn’t please Apple more to have this alliance.  It’s sure to bring them huge revenue next quarter or whenever it gets implemented.

As for producing more units, I’m sure Apple is capable of that.  I’m sure the reason they sold out during the Holidays is that they simply didn’t anticipate the huge demand.  But with HP, everything would have to be done in bulk pre-orders with guaranteed sale to HP.  There will be no unexpected demand to meet.

I’m also sure Apple will either boost its support department for this or train HP support in iPods.  I’m betting the latter. if HP is getting profit from an branded iPod—and they’re probably not even going to call them iPods—then HP will probably have to take over the tech. support for them. 

I guess if Apple can’t give us good colored iPods, then we’ll have to get them from HP, eh?

Posted by dethbrakr in Tacoma, WA on January 8, 2004 at 3:16 PM (PDT)

16

I expect that HP will bundle a low end hPod with high level PCs - a good inducement to buy that over a dell; better perhaps than a slightly faster processor or graphics card. Probably a very good way to capture PC market share.

Posted by jackson on January 8, 2004 at 3:19 PM (PDT)

17

They are not going to make it les expensive. More and more people will buy the HP version rather that Apple’s Version, but that wont make up the difference that apple will lose form orginal ipod sales. I still cant imagine A BLUE IPOD

Posted by Persian Punisher on January 8, 2004 at 3:24 PM (PDT)

18

Apple has taken the way of Limp Bizkit and sold out to the extreme.

Posted by Ferrari on January 8, 2004 at 4:41 PM (PDT)

19

who cares apple may make more selling to hp then selling the ipod its all good! If this deal didn’t happen I do no how much long ipod would have been king, but I like apples chances now! the future is much brighter. I wonder how pissed gates is now?

Posted by joe on January 8, 2004 at 4:54 PM (PDT)

20

It seems that instead of fading out the 3G iPod with the launch of the stupid mini, Apple is still trying to build the market share on the 3G iPod in different ways like this deal with HP.  I have a feeling that the Original 3G iPod will not go away, but become bigger in various ways !!!  As for the mini, Apple just see it as a sub-product line.  I do not believe Apple will build on much support for it.  So, i suggest that people who are interested in the mini-pod to save up and just wait for the 4G iPod.

Posted by Poddy in Love in Singapore on January 8, 2004 at 5:02 PM (PDT)

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