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HP to Ship its Branded iPod in September

TMO Reports - HP to Ship its Branded iPod in September

by , 8:45 AM EDT, July 19th, 2004

HP announced Monday that it will begin selling its branded version of Apple's fourth-generation iPod sometime in September. The company gave no specific pricing and did not say which size iPod it would sell.

"We decided to wait for this amazing new fourth generation iPod, as it will offer our customers an even better experience. HP's version of the new iPod will be available in September," HP chairman and chief executive officer Carly Fiorina said in a prepared statement.

It was announced in January that HP would re-sell Apple's popular iPod portable music player under its own brand name. Additionally, HP began this summer to pre-install the iTunes software and a desktop icon guiding users to the music site on HP Pavilion, Media Center and Compaq Presario desktop and notebook consumer PCs.

The deal with HP involves only the traditional iPod design, now in its fourth-generation, and not the iPod Mini models. Phil Schiller, senior vice president at Apple, told The Mac Observer back in January that although HP would not be selling the mini version initially, "that's obviously something we can look at in the future," he said.

Observer Comments

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Close Name:Guest
Subject: First post

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Close Name:Guest
Subject: I want to copy the other guest here

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Sorry, on a whim of stupidity and randomness today!

Only two questions though: How much does Apple make out of the HP "hPod" deal? Do those units made by HP factor into the iPod's marketshare?

Close Name:DawnTreader -   TMO Staff Posts: 15039 Joined: 04 Jan 2002
Subject: Re: I want to copy the other guest here

Quote
Anonymous wrote:
...

Sorry, on a whim of stupidity and randomness today!

Only two questions though: How much does Apple make out of the HP "hPod" deal? Do those units made by HP factor into the iPod's marketshare?


Apple will make a little less on the Hpod than the iPod on a per unit basis, allowing HP its margin. However, the increasing economies of scale as well as the increased used of the AAC format and the iTunes Music Store more than outwiegh the small ding to margins. Essentially, the volume on the HP deal will allow Apple to reduce its own costs per unit.

iTMS is now pre-loaded on every HP consumer PC establishing the *Pod/iTMS solution as the digital music solution of choice for HP customers.

It's another reason Apple is approaching the *Pod/iTMS solution as a platform independent product line for Apple.

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