HP Ends Ipod Sales

Executives at HP have put an end to a deal with Apple Computer under which iPod music players were available as HP-branded devices. Although the deal was first announced in January 2004, the first models were not available from HP until the fall of 2004, and sales of HP iPods accounted for just 5 percent of iPod sales on average. According to an HP spokesperson, the company remains committed to a strategy of digital entertainment, but “reselling the iPod does not fit within that strategy.” Under the terms of the original agreement, HP will continue to provide support for the iPods it has sold, and HP is not allowed to market a competing digital music player until August 2006. HP expects its current inventory of iPods, iPod Minis, and iPod Shuffles will last through the end of September. The company will continue to sell other digital-entertainment products, such as televisions and Media Center PCs.

CNET, 29 July 2005