Filed under: Apple Corporate, iTunes
HP's iTunes obligations coming to an end
Hewlett Packard's deal with Apple, requiring HP to bundle iTunes with its PCs, will lapse in January. HP says it plans to pursue a new digital entertainment strategy in 2006, but isn't telling what that strategy will look like. Business Week reports that there has already been some "cozying up" between HP and Microsoft, and suggests that HP will once again become a "chess piece," although not a very powerful one, in Microsoft's efforts to beat Apple in the music and digital media markets. Ah, what a tangled weave these companies weave.A little history puts the demise of the HP-Apple deal in perspective. Back in January 2004, HP's former CEO Carly Fiorina, inked a deal with Apple allowing HP to resell iPods with the HP logo on the back and requiring HP to pre-install iTunes on its PCs. HP insiders criticized the deal from the start, concerned that it distracted HP from developing Windows Media products, and that it made the company look like anything but an innovator. To make a long story short, HP quit selling iPods this summer and will soon be free of obligations to bundle iTunes with its PCs. Does Apple care? We'd bet not.
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Reader Comments (Page 1 of 1)
Brian Harris said 11:19PM on 12-15-2005
I think the HP/Apple deal was the only good thing Carly did. Did it make HP tons of money? No. But then again, HP's computers don't even make money. It was nice to see HP admit that the best digital music experience was the iPod. But I'm sure Mr. Hurd and crew will come up with something great....NOT!
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SubGenius said 9:39AM on 12-16-2005
I helped a friend set up their new HP computer a little while ago. Unfortunately, HP bundles so much junk software with their computers that unless you knew to look for iTunes, it will be a long time before you actually discover that it's been there all along.
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Mac Diva said 9:49AM on 12-16-2005
HP loses more than Apple. With the iPod as hot as it is, getting mentioned in articles about the iPod was excellent free publicity.
Perhaps HP will be joining the ill-conceived Microsoft-MTV relationship.
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