HP drops iPod
HP decided to stop selling iPods, because Apple’s iPod doesn’t fit its current digital entertainment strategy, this partnership that lasted for less than 2 years. HP plans to stop reselling iPods by the end of this September.
For Apple, the breakup ends an alliance that gave the Cupertino firm access to HP’s much wider retail presence, including Radio Shack, Wal-Mart and Costco.
HP won’t be having portable music player to sell till August 2006, because of noncompete clause in the original deal with Apple that prohibits HP from developing or marketing a music player that will disturb iPod’s market.
For HP, the move to dump the iPod is part of the company’s remodelling that started in February with the firing of Carly Fiorina as chief executive and the restructuring by her replacement, Mark Hurd. The reworking of HP includes more than 14,000 layoffs announced last week.
For Apple, loosing HP as partner won’t be that hard, because HP-branded iPods making up 5% of overall iPod Sales.
HP promised to honor warranties
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