Steve Jobs talks iPod, iTunes and the recent HP deal

Q: Hewlett-Packard (HPQ ) just announced that it would resell the iPod and load iTunes on its home PCs starting this summer. That’s a major change of course for Apple. Why? Have you approached other PC makers about doing similar deals?

A: HP looked at the choices they had, and they thought what we were doing was the best in the industry, and they expressed an interest in working with us. The more we discussed it, the better it sounded. Look, we don’t make our own printers. We use HP’s printers. They’re better at making printers than we are. HP decided that we’re better at making portable music players and online music stores, and there is no shame in any of that. I think it’s pretty smart.

Q: The iPod is Apple’s first non-Mac hit in years. What’s the significance of that to you?

A: It’s very exciting to be able to apply Apple’s innovation, engineering excellence, and marketing skill in a market where we don’t have that 5% market-share ceiling to see what we can do. And it feels good.”

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