HP to stop selling Apple's iPods

Posted:
in iPod + iTunes + AppleTV edited January 2014
Hewlett-Packard Inc. has decided to stop reselling Apple's popular iPod portable music player, the Wall Street Journal reported on its Web site Friday.



The two companies confirmed that HP will immediately phase out sales of the iPod through its retail distribution partners, whom HP notified of the changes on Thursday.



"They've decided that reselling iPods doesn't fit with their company's current digital media strategy," Apple spokeswoman Katie Cotton told the Journal.



HP, which began selling iPods last September, has been met with frustration overs Apple's marketing tactics, sources familiar with the partnership have told AppleInsider.



In January, HP stopped ordering iPods from Apple's factory, protesting a lack of price protection offered with each player Apple sold to HP. Shortly thereafter HP resumed orders, but the issue was left unresolved.



Reliable sources told AppleInsider last week that the same price protection issues played a major roll in Apple's ability to secure a deal with RadioShack to place iPods in nearly 7000 of its electronics stores this holiday shopping season.



HP had previously formed an exclusive partnership with RadioShack to sell iPods, but was unable to offer the retailer proper price protection. When Apple recently came knocking on RadioShack's door with more amicable terms, the electronics retailer was eager to form a deal and did so.



HP accounted for 8 percent of total iPod sales last quarter, which was up from 3 percent during the previous quarter.
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Comments

  • Reply 1 of 47
    nathan22tnathan22t Posts: 317member
    not a huge loss here...
  • Reply 2 of 47
    eh, don't let the door hit you in the ass on the way out . . .
  • Reply 3 of 47
    Quote:

    "They've decided that reselling iPods doesn't fit with their company's current digital media strategy," Apple spokeswoman Katie Cotton told the Journal.



    HP strategy = going out of business.
  • Reply 4 of 47
    macgregormacgregor Posts: 1,434member
    Well I think this is a bigger problem than y'all think. Maybe Radio Shack will be that lower level outlet, but I think Apple needs more bridges, not fewer!



    HP is going out of business like Apple was 5 years ago.
  • Reply 5 of 47
    a_greera_greer Posts: 4,594member
    Quote:

    Originally posted by MacGregor



    HP is going out of business like Apple was 5 years ago.




    One major differance, HP has no new tech on the horison...If OS 10 had just been a continuation of OS 9 and the iPod hadn't happened, I think Apple would have gone under by now. The fact is that the iPod saved Apple and NeXt step saved the Macintosh platform. Apple made 1 wise decision in the 1990s, to buy NeXt (and thus aquier the base of OSX and of course, Steve).



    What is coming down HPs pipeline? the death of their unix stuff - HPUX is no more.
  • Reply 6 of 47
    jimdreamworxjimdreamworx Posts: 1,064member
    With IBM selling its PC division to China, and the HP/Compaq merger not showing itself to be what it should, what do PC makers have to offer that you cannot get from Dell?



    At least HP still makes printers...
  • Reply 7 of 47
    wnursewnurse Posts: 427member
    Quote:

    Originally posted by OriginalMacRat

    HP strategy = going out of business.



    You replied to an incorrect quote.. being this is appleinsider, a rumor site, i am not surprised they got the quote wrong. It was apple that decided that HP reselling ipods did not fit in their strategy, not HP as appleinsider claims.



    That being said, i am not surprised. I'm shocked HP even entered the deal without price protection. I'm even shocked Radio Shack did a deal with apple. They will soon come to realize that Apple dictating terms to them is not palatable. Imagine going into every supermarket and finding out that Kellogs cereal cost the same everywhere because Kellog said so. Actually, imagine a country where the price of any product is the same everywhere. (one benefit is that my girlfriend would no longer like shopping and we can then use the extra time to do other important stuff.. like watching sports or participating in fantasy leagues). Anyway, Anyone wants to place bets when Radio Shack will break of the partnership. I say 1 year, maybe 2 (since it seems they are being given better terms than HP was given).
  • Reply 8 of 47
    wnursewnurse Posts: 427member
    Quote:

    Originally posted by a_greer

    One major differance, HP has no new tech on the horison...If OS 10 had just been a continuation of OS 9 and the iPod hadn't happened, I think Apple would have gone under by now. The fact is that the iPod saved Apple and NeXt step saved the Macintosh platform. Apple made 1 wise decision in the 1990s, to buy NeXt (and thus aquier the base of OSX and of course, Steve).



    What is coming down HPs pipeline? the death of their unix stuff - HPUX is no more.




    Don't want to defend HP but you don't work there. You have no idea what they are coming up with and one does not have to have a hot consumer item to survive. Microsoft is doing all right without an ipod, aren't they. HP will survive without an Ipod. I'm sure HP forgot to keep you in the loop about their future product plans. I'll send them an email to remind them to CC you on internal communications.
  • Reply 9 of 47
    fahlmanfahlman Posts: 696member
    Quote:

    Originally posted by JimDreamworx

    With IBM selling its PC division to China, and the HP/Compaq merger not showing itself to be what it should, what do PC makers have to offer that you cannot get from Dell?



    Variety.



    HP is too big. If HP said, "Okay, we're selling off the PC side of the business and we're going to concentrate on printers, that's where the money is, the PC business isn't profitable enough anymore." Who would, or could, buy them?
  • Reply 10 of 47
    kasperkasper Posts: 941member, administrator
    Quote:

    Originally posted by wnurse

    You replied to an incorrect quote.. being this is appleinsider, a rumor site, i am not surprised they got the quote wrong. It was apple that decided that HP reselling ipods did not fit in their strategy, not HP as appleinsider claims.



    Um, I think You are wrong.



    Read for yourself:



    http://www.marketwatch.com/news/news...27A99E47E3E%7D



    www.wsj.com



    http://www.macnn.com/articles/05/07/...eselling.ipod/



    But thanks for the vote of confidence,



    -K
  • Reply 11 of 47
    melgrossmelgross Posts: 31,647member
    Quote:

    Originally posted by Kasper

    Um, I think You are wrong.



    Read for yourself:



    http://www.marketwatch.com/news/news...27A99E47E3E%7D



    www.wsj.com



    http://www.macnn.com/articles/05/07/...eselling.ipod/



    But thanks for the vote of confidence,



    -K




    He is wrong (so I've been told).



    Apple is not doing right here. If you get the reputation as being an unreliable business partner, or even worse. one that directly competes with its partners, you will have problems making deals in the future.



    This is probably why the WalMart deal came about as well.



    It was unheard of that Apple didn't offer Hp price protection. And then to compete with them using that as a wedge...
  • Reply 12 of 47
    wnursewnurse Posts: 427member
    Quote:

    Originally posted by Kasper

    Um, I think You are wrong.



    Read for yourself:



    http://www.marketwatch.com/news/news...27A99E47E3E%7D



    www.wsj.com



    http://www.macnn.com/articles/05/07/...eselling.ipod/



    But thanks for the vote of confidence,



    -K




    Then other sites that reported differently, USAToday for example got it wrong. Someone is wrong. I wonder who wrote the original article.



    relevant links

    http://www.sfgate.com/cgi-bin/articl...f124205D77.DTL

    http://www.usatoday.com/money/indust...-29-ipod_x.htm

  • Reply 13 of 47
    fahlmanfahlman Posts: 696member
    This is simple, evil but simple. HP uses it distribution channel to get iPods in to retailers that Apple might not have been able to get in to easily or as quickly. The iPod takes off, becomes the number one digital music player. Retailers start to see dollar signs. HP withdraws from the agreement presumably because Apple is difficult to work with. Apple steps in and supplies all retailers who are left empty handed with iPods directly, increasing their profit.
  • Reply 14 of 47
    melgrossmelgross Posts: 31,647member
    Quote:

    Originally posted by fahlman

    This is simple, evil but simple. HP uses it distribution channel to get iPods in to retailers that Apple might not have been able to get in to easily or as quickly. The iPod takes off, becomes the number one digital music player. Retailers start to see dollar signs. HP withdraws from the agreement presumably because Apple is difficult to work with. Apple steps in and supplies all retailers who are left empty handed with iPods directly, increasing their profit.



    Hp never got a big marketshare though. Without price protection they were at a disadvantege as well.



    Apple has been behaving badly the past few of years.



    Competing with their dealers by not supplying them with product. Raising the requirements to remain a dealer. Now opening a store a block away from the biggest Mac dealer here in NYC.



    None of this is good.
  • Reply 15 of 47
    fahlmanfahlman Posts: 696member
    Quote:

    Originally posted by fahlman

    HP withdraws from the agreement presumably because Apple is difficult to work with.



    According to the USA today article Apple spokeswoman Natalie Kerris said, "Apple has decided that reselling iPods does not fit within the company's current digital entertainment strategy. As a result, HP plans to stop reselling iPods by end of this September."



    Apple is evil
  • Reply 16 of 47
    vinney57vinney57 Posts: 1,162member
    It was Apple's decision. The agreement was always a little awkward and was put together under the Carly Fiorina regime. It makes no sense anymore (if it ever did)
  • Reply 17 of 47
    wnursewnurse Posts: 427member
    Quote:

    Originally posted by fahlman

    According to the USA today article Apple spokeswoman Natalie Kerris said, "Apple has decided that reselling iPods does not fit within the company's current digital entertainment strategy. As a result, HP plans to stop reselling iPods by end of this September."



    Apple is evil




    I wouldn't say Apple is evil, I'd say they are a very difficult company to work with. It seems the loyal apple fans refuse to see this. In a sense, one cannot blame apple though. In the 90's they played nice and look what happened..the saying "nice guys finish last" was very true. Now they are cutthroat. I'm just amazed that any other technology company would play along with them. They are not microsoft. They cannot punish you for not dealing with them. But Apple has learned it's lesson and is backstabbing as well as microsoft does. Have you read the latest microsoft backstabbing?. They are now competing with their partners for Small businesses (after promising not to, if the partners sell microsoft products).. Apple has surely learned from the best. Make a deal and then undermine your partner all the while growing marketshare and then discard the partner when it suits you.

    I guess Steve Jobs is tired of finishing last. However, i think the apple diehards should get down on that high moral horse, don't you?. Apple is no longer the nice guy. They are not evil, they just got a little roughneck in them now.
  • Reply 18 of 47
    vinney57vinney57 Posts: 1,162member
    Quote:

    Originally posted by fahlman





    Apple is evil




    That's a joke, right?
  • Reply 19 of 47
    wnursewnurse Posts: 427member
    Quote:

    Originally posted by vinney57

    It was Apple's decision. The agreement was always a little awkward and was put together under the Carly Fiorina regime. It makes no sense anymore (if it ever did)



    Well, got a few votes of confidence.. maybe the administrator who admonised me would post an update?. Do you still stand by appleinsider reporting?
  • Reply 20 of 47
    wnursewnurse Posts: 427member
    Quote:

    Originally posted by vinney57

    It was Apple's decision. The agreement was always a little awkward and was put together under the Carly Fiorina regime. It makes no sense anymore (if it ever did)



    I agree with you.. i never understood how HP was benefitting from the deal. I understood why Apple did it. Now i read that HP signed a non-compete agreement with Apple.. wow!!.. Apple raped HP. No wonder Carly was fired. Imagine, agreeing not to innovate to sell a potential competitor product where you are not offered price protection and you are told you have no price flexibility. Man.. gotta give Apple props. Their lawyers made their yearly bonuses on that one deal. HP management must be silently fuming right now.
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