HP to stop selling iPods | iLounge News

2014 iPad iPhone iPod Buyers' Guide from iLounge.com

News

HP to stop selling iPods

Author's pic

By LC Angell

Contributing Editor
Published: Friday, July 29, 2005
News Categories: iPod

Hewlett-Packard has decided to stop reselling Apple’s line of iPods, the Wall Street Journal confirmed Friday [paid sub. req.]. HP spokesman Ross Camp told the paper that “the iPod doesn’t fit in with our digital entertainment strategy,” and said the company will quit selling the iPod at end of September.

“The deal between the two companies, which compete against each other in the PC market, was originally viewed as a major step for both companies, but the breakdown of the partnership isn’t likely to be a big loss for either side,” The Journal reports. “H-P on average accounted for only 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.”

Camp told CNET News.com that HP’s “current plan” is to continue including Apple’s iTunes on its desktop and notebooks like it has done since 2004. The HP representative also said that under the terms of the partnership with Apple, HP cannot develop or market a rival digital music player until August 2006.

Apple and HP first announced their partnership in January 2004 at the Consumer Electronics Show in Las Vegas. HP started selling iPods in August 2004, then later added the iPod mini and more recently the iPod shuffle to its HP-branded line.

« New Podcast: The iLounge Week in Review 3

iSkin Wheel Caps now available in 3-pack »

Related Stories

Comments

1

So what happens if my HP iPod needs service or to be replaced…?

Posted by Will on July 29, 2005 at 3:05 PM (PDT)

2

HP sucked anyway - and you couldnt even save some money, as their prices always matched apple’s. HP, we wont miss you !

Posted by homer s. on July 29, 2005 at 3:29 PM (PDT)

3

At least that means there will be clearence priced iPods at the end of september. Woo.

Posted by Rascal_King on July 29, 2005 at 3:30 PM (PDT)

4

“At least that means there will be clearence priced iPods at the end of september”

Maybe. But the September timeframe was supposedly chosen by HP because that’s when they anticipate running out of iPod inventory.

This was a Hurd decision. The new HP CEO is out to dismantle Carly’s infamous legacy within the company. Reselling other people’s equipment made A LOT of long-timers inside HP very unhappy, and was often seen as being somewhat embarrassing for a leading tech company.

Posted by flatline response on July 29, 2005 at 3:57 PM (PDT)

5

It seemed Apple was screwing HP. I work at Sams Club, and we got our new shipment of 30gig hp photos, mini’s, and shuffles, not even a week before Apple did all of their price cuts on all the models. Of course retailers can’t discount the prices to match that fast, so all the ipods are bought directly from Apple instead. If you ask me, it seems their wasn’t enough collaberation on Apple’s part in this whole thing.

Posted by jcpiebald on July 29, 2005 at 4:28 PM (PDT)

6

Yo HP!, what happens to my service Plan???? you screwed me!!!! HP sucks! they deserve to be bought off by those taiwanese shuffle copiers. and then we’ll see the ipod back with HP.

Posted by ipod hp on July 29, 2005 at 6:25 PM (PDT)

7

I was wrong.  I thought the HP iPod would be a big hit.  But, I think the mistakes they made were right out of the gate. 

Initially when they announced the partnership Carly was showing off a blue iPod, and it soon got the nickname ‘hPod’.  I think if they would’ve gone with the blue and the ‘hPod’ moniker it would’ve been a bigger hit.

I think the HP version would’ve benefited by thumbing its nose at Apple a bit by being blue.  The PC vs. MAC debate would’ve continued and the sales may have benefited from this rivalry.

As it is, there never seemed a reason to by an ‘imitation’ iPod from HP.

I guess I expect HP to unveil their own player soon.

Posted by Talking Madness in Los Angeles on July 29, 2005 at 8:52 PM (PDT)

8

Interesting to note some of the reactions about this transition. First off, HP has done a great deal of good for the tech community in many ways, but you would have to be around long enough to understand that history. I see Hurd as a monumental mistake in trying (I state trying because the best he will ever achieve) to lead HP, when he is as far away from tech as one could ever be (V.J. should have got the job).

Second, since the dawn of Apple there were some fine businesses that helped to keep Apple alive in its darkest hour, and Apple in the past several years has effectively slashed their throats leaving them for dead—that’s gratitude at its finest. Steve should have appreciated those who gave their all for Apple, but what goes around comes around.

If nothing, I see the HP version of the iPod being worth more to the collector.

Have to agree with Talking Madness as a blue HP iPod was the logical color. Luckily, I own an HP iPod, and now I’m never letting go of it.

Posted by FahrenheiPod 451 on July 29, 2005 at 9:53 PM (PDT)

9

Those of you with the HP iPod should hang onto it, good-condition ones will probably go for a song on eBay in a few years’ time!

Posted by phennphawcks on July 30, 2005 at 1:41 AM (PDT)

10

Talking Madness, you’re one of the very few who actually brought this point up about HP not doing anything unique with the iPod. That was the first thing that came to my mind when I first read the news.

Even when car companies share models they at least change the grille or something.

Posted by Pikemann_Urge on July 30, 2005 at 4:08 AM (PDT)

11

I expect HP to unveil their own player soon.

Carly never really understood tech. A more bolshy HP is potentially trouble for Apple, seeing as how, thanks to its purchase of Compaq, HP now owns some of the patents to the original hard disk mp3 player, the PJB-100, released back in 1999. A bunch of the people on that project jumped ship to PortalPlayer, and should HP decide to start squeezing them for royalties, it would prompt PP to raise prices across the board, reducing Apple’s pricecutting leeway.

In fact I think we’re entering a period of legal battles in the mp3 market. Apple is too entrenched for most people to succeed quickly in the marketplace within the next few years and so many of the big players are now retooling to focus on mundane, boring legal wrangling to even the playing field. In that light, SigmaTel’s recent purchase of DNNA’s Rio mp3 player patents is significant: Rio bought the IP of Diamond, which basically invented the mp3 player back in 1998 (well, there was the MP3 Man before that, but those Koreans never applied for US patents). SigmaTel already makes a big chunk of change selling its chips to, among others, PortalPlayer and Apple. Owning the original patents will let it raise prices significantly while reducing the options for PP/Apple to jump ship.

HP withdrawing from the fight is significant. It may feel that it stands a better chance of making some real coin by extracting royalties from dominant players, rather than competing itself. Apple’s fundamental weakness in this space is that it was far from being an early player and relies on commodity hardware, chipsets, and off-the-shelf components. Beyond some facile user-interface widgets and patents, it has no fundamental, defensible patents for the core technology of an mp3 player. That leaves it vulnerable.

Posted by Demosthenes on July 30, 2005 at 7:51 AM (PDT)

12

The whole deal never made any sense to me.  Lasering on an HP logo does not constitute branding, so they were just another sales outlet.  No different than if they let Best Buy laser on their logo.  No one associated the iPod with HP, so I think it only served to confuse the image of HP in the marketplace.  HP seems really lost and they need to focus their products and image.  Hopefully it will be technology development driven and not extortionate licensing driven.

Posted by Scientist on July 30, 2005 at 8:42 AM (PDT)

13

I agree. If HP were never going to distinguish ‘their’ ipod from Apples why bother?

Walmart sells ipods…should they lazer on thier logo too?

The hp ipod should have offered something the Apple one did not. Perhaps a diferen color (gray w/ white clickwheel?) and maybe a diferent capacity. How about a gray w/ white click wheel 15GB hPod for $269? THAT would have made a little sense. They also then could have/should have bundled thier version with their computers.

To do what they did was a waste. I would have bought a hp ipod for a $30 savings but often they were never more then $5 less,if that.

Posted by LEPFAN on July 30, 2005 at 10:34 AM (PDT)

14

Apparently HP had little room on price, seems Apple was pulling the strings:

http://www.appleinsider.com/article.php?id=1211 (rumour of course, it’s AppleInsider)

As the other’s have said, I see no reason to buy an HP iPod instead of a pure Apple one - HP had no point of difference, except in it’s after sales package. But that may not be down to HP and could have been Apple’s choosing… Who knows…?

Posted by struddie on July 30, 2005 at 1:34 PM (PDT)

15

The HP deal was very good for apple, not so good for HP. I can’t understand why anyone would buy an HP ipod when it’s not differentiated in any way. HP had to assume all support responsibilities, pay for all marketing, and what did they get? A “rebadged” ipod.

The idea mentioned above about the “hpod” would have been cool. I would have purchased the HP model if they canged the color because I don’t like the white. I guess I’m stuck with it until Apple comes out with ipod colors (later this year??). The U2 doesn’t count because it’s too small to hold my music.

Posted by panorama in Boston on July 31, 2005 at 7:22 AM (PDT)

16

I just purchased the Ipod HP 30GB should I take it back?

Posted by smileyw on July 31, 2005 at 11:03 AM (PDT)

17

what the hell is going to happen to my plan? this sucks, i paid extra.  the only reason i got an hPod was the Radioshack was closer then bestbuy im regretting this right now..

Posted by Ryan Imhof on July 31, 2005 at 1:13 PM (PDT)

18

cnet.com explains Apple noted that HP is responsible for supporting the iPods that it sold.

“As with all HP products, HP will support the Apple iPod from HP consistent with the terms of HP’s limited warranty and award-winning service,” Apple said.

Posted by Angel (http://www.z on July 31, 2005 at 1:59 PM (PDT)

19

You guys need to chill out with the Apple lovefest. Who really knows what went on behind the scenes? Seems to me that Apple wasn’t very helpful to HP in the long run. In fact, Apple should thank HP for letting it’s product sell in such stores as WalMart and CostCo - places that Apple has no business relations to.

You guys seem blinded by the fact that ‘Apple can do no wrong.’ It’s unhealthy smile

Posted by Jeff S. on July 31, 2005 at 9:52 PM (PDT)

If you have a comment, news tip, advertising inquiry, or coverage request, a question about iPods/iPhones/iPad or accessories, or if you sell or market iPod/iPhone/iPad products or services, read iLounge's Comments + Questions policies before posting, and fully identify yourself if you do. We will delete comments containing advertising, astroturfing, trolling, personal attacks, offensive language, or other objectionable content, then ban and/or publicly identify violators.

Commenting is not available in this section entry.

Email:

Recent News

Recent Reviews

Recent Articles

Shop for Accessories: Cases, speakers, chargers, etc.