HP stops placing iPod orders

So much for ‘strategic alliance.’ Hewlett-Packard, having recently entered into an agreement with Apple to put out HP-branded versions of the iPod under the name ‘iPod+ HP’, has halted its iPod orders altogether. The reason is an apparent quarrel with Apple over a lack of price protection, which may also explain why the companies have not yet set a date for the rollout of the HP-branded iPod photo.

HP is refusing to place any iPod orders until Apple is willing to come to an agreement on the price protection issue. The HP online store is already out of stock of the 20GB iPod and running low on the 40GB model.

As Scott mentioned in his play-by-play of the edge-of-your-seat Q1 2005 conference call, HP iPods accounted for only 7% of the 4.58 million iPods sold last quarter. Might this have something to do with the fact that Apple doesn’t appear to be losing any sleep over HP’s lack of stock…?

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So much for ‘strategic alliance.’ Hewlett-Packard, having recently entered into an agreement with Apple to put...

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apainter

I wouldn't be surprised if putting iTunes on HP machines hasn't been a very profitable move and Apple doesn't have a real business reason to continue things. HP's concerns for price protection from Apple is a legit concern though.

January 16 2005 at 4:53 PM Report abuse Permalink rate up rate down Reply

GEAH

With the release of the Mini, it makes sense that Apple is no longer interesting in putting Windows users at ease. Now Apple's saying, "Look, for 500 bucks you cann have the OS that works best with the iPod. Why make Bill Gates any richer? Steve Jobs' kids need new shoes."

January 16 2005 at 12:20 PM Report abuse Permalink rate up rate down Reply