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HP and Apple Separate; Apple gets Custody

Kasracer writes "Yesterday, The Register reported that HP separated from Apple's iPod selling agreement. 'Doing its best to erase Carly Fiorina's mistakes, HP has culled an iPod reselling agreement in place with Apple since January of 2004.' It is unclear whether or not HP will create an mp3 player or partner with another computer to fill the void."

29 of 213 comments (clear)

  1. No wonder they split. by Anonymous Coward · · Score: 4, Informative

    Out of the $1.2billion from iPod sales made by Apple, HP contributed $15million.

    That's not much in the scheme of things, and even less when you consider the size of most of HP's other markets.

  2. Not too surprising by Jeff+DeMaagd · · Score: 4, Interesting

    The iPod line was changing quicker than HP was getting updated models, currently a sub-generation behind with just getting the 30GB Photo in and Apple cut it from their own line, I think that's about a three or so month delay.

    As the Register article points out, it points out that HP really wasn't about "invent", despite their logo.

  3. Re:Is it just me... by Anonymous Coward · · Score: 5, Insightful

    You missed the point.

    It worked for Apple because it got iPods in more retail outlets, expanded production lines, spread liability and production expense, and got iTunes put on HP computers.

    It worked for HP by allowing them to associate themselves with the cool cachet of the iPod brand.

    That was the idea, anyway. I think Apple got a lot more out of the deal, though, which is why HP pulled the plug.

  4. Partner with... what? by julesh · · Score: 5, Funny

    "Partner with another computer to fill the void?"

    Does nobody edit these submissions?

    1. Re:Partner with... what? by Anonymous Coward · · Score: 5, Funny

      Nobody does edit the submissions.

  5. If only, if only by Pingsmoth · · Score: 4, Funny

    What HP really needed to make this deal a winner was an "HP Store". They could have employees dress all trendy and sell HP products and accessories for their iPod, as well as explain this whole deal to the public.

    "So, this is an iPod, right?"

    "No way, man. It's an HP iPod"

    "But it looks like an iPod"

    (pause) "Righteous! But it's totally an HP iPod. See this logo on the back?"

    "But I wanted to get one of those iPods my friends have. I thought this was one."

    (longer pause) ...It's an HP iPod!"

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    1. Re:If only, if only by GungaDan · · Score: 4, Funny

      HP giving away Neuroses? Their supply of delusions of grandeur must've run out.

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  6. HP's "digital enterprise strategy" by Rosco+P.+Coltrane · · Score: 5, Interesting

    The day they quit making calculators is the day everybody knew HP's strategy was going to become utterly wrong. Whatever venture they decided to pursue after that can be safely regarded as not-very-sensible. The wording of their PR statement after the iPod settlement simply confirms that they still don't have a clue what to do next.

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  7. Not sure about the rest of you by gunpowda · · Score: 4, Interesting
    But I came across little or no advertising for HP's version of the iPod. If I remember correctly, the only differences were the extended support time and the logo on the back.

    How did such an agreement ever make sense from HP's point of view? When people buy an iPod they're often buying into the ethos as well as the functionality. They want the brand. HP re-marketing iPods is just brand dilution. And there was nothing special about 'their' model anyway.

  8. Don't be so hard on them by Y-Crate · · Score: 4, Funny

    I can totally understand HP's position on this. Selling the iPod doesn't fit into their current corporate strategy of offering products that absolutely nobody wants.

    1. Re:Don't be so hard on them by sean23007 · · Score: 4, Funny

      Sure it does. Did anybody buy one?

      --

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  9. They have to wait until 2006 by IIDX · · Score: 5, Informative

    As far as I know, their contract stated that HP has to wait until 2006 before they can release their own MP3 player.

  10. Non-Competition agreement by moo083 · · Score: 4, Informative

    Unlike what the article says, at least for a while (a year I think), HP cannot make its own MP3 player or sell another one, because of a Non-Competition agreement they made with Apple at the beginning of their iPod selling. I mean, it is possible that they decided this period of time without an MP3 player for sale was worth it for what they would do after, but who knows what will happen at that point.

  11. Re:Is it just me... by Jeff+DeMaagd · · Score: 3, Informative

    That really isn't true anymore. There used to be separate Mac and PC models, the Mac used HFS+, The PC version used FAT32.

    FAT32 is the default file system for Apple iPod now, unless you reformat it. If you do have a Mac, reformatting it and putting Journaled HFS+ isn't that bad of an idea, though journaling itself isn't totally necessary.

  12. Why the HP iPod failed by Anonymous Coward · · Score: 5, Funny

    No wireless. Same size as an Apple iPod. Lame.

  13. Good. by sootman · · Score: 5, Interesting

    I never got why HP did this. It looked nothing more than what it probably was--a desperate attempt to try to cash in on a popular name. Was there any reason to buy an HP iPod instead of an Apple one? Same price, same warranty, same everything, right? Didn't even have an HP logo on it, IIRC. I always thought the only people who would buy one were people who bought one at the same time they were buying a machine. Is it worth it to advertise, track inventory, etc., for what must have been only a handful of sales? (Evidently not.) No sense mentioning that carrying a competitor's product always seemed pretty dumb.

    I hate to sound like one of those people who say "Apple is perfect and everyone should copy them" but one of the good things Apple has done recently is simplify and standardize their line and ComHPaq should really follow. PowerMac and PowerBook have been around for ages, and even if people might not know the name "powermac" (thinking instead of it as just "a Macintosh") there are just as many people who think *any* notebook is "a powerbook." iMac and iBook have both been around for over 5 years. Those items, plus the iPod, are the core of their line and just about everyone knows them. Those items, plus the Mac mini, eMac, and displays, are pretty much Apple's *entire line*, so it's easy to figure out what's going on, there is very little overlap and, even more importantly, clear distinctions as to *why* you should buy one over another--not just categories for categories' sake. (The only fuzziness comes from the 12" PowerBook. Lots of people ask me about that versus the iBooks, especially now that the iBooks have G4s. Otherwise, everything else is clear as day. People pretty much look at the line and figure out what they want in a few minutes.)

    OTOH, only a few people even recognize the names 'Presario' and 'Pavilion' (nothing like carrying two lines that totally overlap; I see no difference today compared to how the lines were when HP & CPQ were two companies) and beond the general product names, look at the items--d4100y, d4100e, a1050y, a1010y, a1030e, a1000y, SR1020T, SR1010Z, SR1020V. (Yes, the mix of upper- and lower-case letters is just as ComHPaq describes them.) What the fuck is all that?

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    1. Re:Good. by boomerny · · Score: 3, Insightful

      yup, using cryptic model names is bad for business as far as I'm concerned. Do people go into a store and ask for an iPod or a Sony NW-HD5? An iMac or a Sony VGC-RB42G? Keep it simple, folks.

  14. Re:Do you think... by ThePatrioticFuck · · Score: 5, Insightful

    I think Godwin needs to come up with another law, the one that says at some point in a discussion, someone will find a way to point the finger of blame at Microsoft.

  15. This means an end of iTunes bundling with HP PCs by aristotle-dude · · Score: 3, Interesting
    I think MSFT put some pressure on HP to drop this partnership. Sure, there were other issues such as price protection and what not but I certainly don't buy the "not invented here" excuse.

    Just look at their line of PC's. They are just branded and assembled from off the shelf parts and motherboards leaving really nothing to distinguish them from the hundreds other PC assemblers. They don't even have unique software to offer as it all comes from another company (MSFT) now. HP Invent? Sure, if the definition of Invention is it take some product and slap on a sticker.

    Their whole business model, outside of printers, is to resell other companies products as their own brand.

    --
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  16. HFS+ is the default file system by Anonymous Coward · · Score: 5, Informative

    For an iPod out of the box. They are all HFS+, but if you install the PC software before connecting the iPod it will prompt you to restore it to be FAT32. If you connect the iPod before installing the software, things get all confused, the OS will prompt you to reformat it, and it'll cease to play music until you restore it.

    There used to be FAT32 iPods and HFS+ iPods from the factory, but not any more.

    iPods don't journal their HFS+. I'm honestly not quite sure what good journalling HFS+ is anyway, I've seen many friends have their drive go corrupt even with journalling on, and it does slow things down a skosh too.

  17. Um, almost a good point. by piecewise · · Score: 3, Informative

    Same price, same warranty, same everything, right? Didn't even have an HP logo on it

    Quick correction.......

    Same price, different warranty, different accessories, and yes, an HP logo. But nice try! Go work for CNN or Fox. ;-)

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  18. My favorite quote from the article... by amper · · Score: 3, Insightful
    And finally, the new VAIO Pocket is touted as the "iPod Killer" and it's easy to see why. Apple should be afraid; very afraid indeed.


    Don't make me laugh. Sony pre-announced the VAIO Pocket over one year ago. In that time, Apple has sold, what, something like 18 million plus iPods?

    3Q2005 iPod sales ~= 6.2 million units
    2Q2005 iPod sales ~= 5.3 million units
    1Q2005 iPod sales ~= 4.5 million units
    4Q2004 iPod sales ~= 2.0 million units
    3Q2004 iPod sales ~= 0.86 million units

    Do Mr. Robinson and The Register seriously think that the VAIO Pocket is going to "kill" a product line which has sold nearly 20 million units just in the time since Sony pre-announced the VAIO Pocket? Never mind what the rest of the world has already said concerning the viability of the VAIO Pocket...

    Apple isn't stitting in Cupertino on their hands, I'm certain.
  19. No just the calculators. by Zordak · · Score: 5, Insightful

    Carly Fiorina was their mistake. I hate that woman. She ruined one of the most respectable companies in engineering. It's not just the calculators. HP used to be synonymous with quality in instrumentation. That's what Bill Hewlett and Dave Packard started doing in their garage fer cryin' out loud! Now that's been spun off (how can you buy an instrument named "Agilent" with a straight face), the Australian Calculator Division is closed, THEY MERGED WITH FRIGGIN' COMPAQ, MAKERS OF THE CRAPPIEST COMPUTERS SINCE PACKARD BELL, and the HP brand means nothing more than "Mediocre PCs." Honestly, does she go and piss on their graves every week too? Is she sleeping with Satan? What's up with that woman?

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  20. Halo Effect by seven+of+five · · Score: 4, Funny

    Carly just wanted to hang out with Steve Jobs and see if some of the coolness would rub off.

    It didn't.

  21. I bought two, owned three by paiute · · Score: 3, Interesting

    I bought two HP iPods for my daughters at Costco for Christmas last year. They were 20 bucks cheaper each than other places, and they worked fine with an iMac and an eMac. I discovered the hidden benefit to buying them at Costoc when one got dropped and the screen cracked. It was unusable and unrepairable. It looked like I was out of luck until I called Costco. No problem, they said. Return anytime up to a year. No questions asked. So I did, and they did. I bought another iPod, same style, same Costco.

    I drop several hundred bucks each month at Costco just on food. Now I look there first for all other items on my wish list.

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  22. Why does everyone misunderstand journaling? by Some+Random+Username · · Score: 5, Informative

    Journaling is 100% purely a way to repair the filesystem quicker than doing an fsck. It does not prevent any corruption on a drive ever, and it does not identify or correct problems when they occur. The journal is just a log, and instead of an fsck you replay the operations in the log file to ensure that every operation that was supposed to happen actually finished happening.

    1. Re:Why does everyone misunderstand journaling? by alienw · · Score: 3, Interesting

      The only benefit you get from journaling is that the filesystem check doesn't take half an hour if the computer isn't shut down properly. There are no other benefits.

  23. Re:Do you think... by Nugget · · Score: 4, Informative
    Only if "like some 40%" means "an insignificant amount"

    In 1997 Microsoft bought $150 million of special, non-voting Apple stock. $150 million bucks might sound like a lot of money, but remember that at the time Apple had over a billion dollars of cash on hand and a market cap in the 8 billion dollar range.

    Microsoft's holdings in Apple today don't even make the top ten institutional holders. You are completely wrong, in other words.

  24. Re:WAL-MART by Chanc_Gorkon · · Score: 3, Informative

    Our Walmart now has a iPod section. For the moment, they have BOTH versions. HP and Apple iPods. Sure, Walmart already had a in with Walmart and Apple did not. I think part of this was so Apple could see how to get into Walmart. Either that, or Walmart went to Apple upon rumors of the HP stopping the deal and now that is why the APPLE iPod is now on the shelf at my local Walmart.

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