From an idealistic point of view, you're right. But put yourself in the shoes of Apple. Image is EVERYTHING! If a reseller is not showcasing Apple products and portraying them the way Apple wants, they have every right to come along and do it themselves.
This is an OPPORTUNITY for retailers to compete against Apple at the SERVICE level. Price is hardly a differentiating factor with Mac products. If the resellers are just going to whine and complain, then they deserve what they get.
Now, to bring it back on topic... I think HP is pissed that Apple has agreed to deal directly with RadioShack. However, time will tell if the "strategy" that HP is working on is what we think it is. Afterall, they began building computers with build-in iPod docks, so it hardly strays from their strategy as we thought it to be.
Interesting.. from now on, when microsoft behaves badly, I don't want to see your name blasting them. Deal?
You know, even if HP were to lose all of its hardware sales, it wouldn't go out of business.
Some people have suggested that IBM could afford to lose its PC business because it still had its chips and big iron. Two things: 1) The PC business, while producing lots of revenue, was actually losing money... it had negative profit, so selling it off leaves IBM with MORE money, not less; 2) IBM is doing well, not because of its chips and big iron, but because of its services.
Services? Yeah, about 55% to 60% of IBM's profits come from services, like building custom software solutions for big corporate customers. They make a huge amount of money from that. And you know what? HP is one of their biggest competitors in the services arena. I don't know what kind of profit percentages HP sees from services, but they make lots of cash there too. Hardware is NOT everything.
You know, even if HP were to lose all of its hardware sales, it wouldn't go out of business.
Some people have suggested that IBM could afford to lose its PC business because it still had its chips and big iron. Two things: 1) The PC business, while producing lots of revenue, was actually losing money... it had negative profit, so selling it off leaves IBM with MORE money, not less; 2) IBM is doing well, not because of its chips and big iron, but because of its services.
Services? Yeah, about 55% to 60% of IBM's profits come from services, like building custom software solutions for big corporate customers. They make a huge amount of money from that. And you know what? HP is one of their biggest competitors in the services arena. I don't know what kind of profit percentages HP sees from services, but they make lots of cash there too. Hardware is NOT everything.
That was the most important change that Gerstner made when he took IBM over. Moved them to a services company. Outsourcing etc.
Do you read the newspapers? Apple has been selling some iPods through WalMart for some time. Thet just made a deal to sell the line.
Good deal. Right now the only iPods available in Iowa Wal-Marts (at least the smaller stores...haven't checked the local supercenter) are the ones from HP and that's all I could find on walmart.com, too. I hadn't seen that in the news. Last I heard, Wal-Mart was only getting them from HP because Apple refused the bit of a price drop that Wal-Mart demands.
Good deal. Right now the only iPods available in Iowa Wal-Marts (at least the smaller stores...haven't checked the local supercenter) are the ones from HP and that's all I could find on walmart.com, too. I hadn't seen that in the news. Last I heard, Wal-Mart was only getting them from HP because Apple refused the bit of a price drop that Wal-Mart demands.
No, they've been selling Shuffles. I think I read that they were in most stores, not all. But now they will be selling most of the models, if not all. I don't remember exactly offhand.
Good deal. Right now the only iPods available in Iowa Wal-Marts (at least the smaller stores...haven't checked the local supercenter) are the ones from HP and that's all I could find on walmart.com, too. I hadn't seen that in the news. Last I heard, Wal-Mart was only getting them from HP because Apple refused the bit of a price drop that Wal-Mart demands.
I don't know if that is true, but that just put HP in an even wierder position, being a wholesaler with no power to play with their prices, but having to be a go between for WalMart demands....
Comments
Originally posted by coolfactor
From an idealistic point of view, you're right. But put yourself in the shoes of Apple. Image is EVERYTHING! If a reseller is not showcasing Apple products and portraying them the way Apple wants, they have every right to come along and do it themselves.
This is an OPPORTUNITY for retailers to compete against Apple at the SERVICE level. Price is hardly a differentiating factor with Mac products. If the resellers are just going to whine and complain, then they deserve what they get.
Now, to bring it back on topic... I think HP is pissed that Apple has agreed to deal directly with RadioShack. However, time will tell if the "strategy" that HP is working on is what we think it is. Afterall, they began building computers with build-in iPod docks, so it hardly strays from their strategy as we thought it to be.
Interesting.. from now on, when microsoft behaves badly, I don't want to see your name blasting them. Deal?
Some people have suggested that IBM could afford to lose its PC business because it still had its chips and big iron. Two things: 1) The PC business, while producing lots of revenue, was actually losing money... it had negative profit, so selling it off leaves IBM with MORE money, not less; 2) IBM is doing well, not because of its chips and big iron, but because of its services.
Services? Yeah, about 55% to 60% of IBM's profits come from services, like building custom software solutions for big corporate customers. They make a huge amount of money from that. And you know what? HP is one of their biggest competitors in the services arena. I don't know what kind of profit percentages HP sees from services, but they make lots of cash there too. Hardware is NOT everything.
Originally posted by TrevorD
You know, even if HP were to lose all of its hardware sales, it wouldn't go out of business.
Some people have suggested that IBM could afford to lose its PC business because it still had its chips and big iron. Two things: 1) The PC business, while producing lots of revenue, was actually losing money... it had negative profit, so selling it off leaves IBM with MORE money, not less; 2) IBM is doing well, not because of its chips and big iron, but because of its services.
Services? Yeah, about 55% to 60% of IBM's profits come from services, like building custom software solutions for big corporate customers. They make a huge amount of money from that. And you know what? HP is one of their biggest competitors in the services arena. I don't know what kind of profit percentages HP sees from services, but they make lots of cash there too. Hardware is NOT everything.
That was the most important change that Gerstner made when he took IBM over. Moved them to a services company. Outsourcing etc.
Originally posted by melgross
Do you read the newspapers? Apple has been selling some iPods through WalMart for some time. Thet just made a deal to sell the line.
Good deal. Right now the only iPods available in Iowa Wal-Marts (at least the smaller stores...haven't checked the local supercenter) are the ones from HP and that's all I could find on walmart.com, too. I hadn't seen that in the news. Last I heard, Wal-Mart was only getting them from HP because Apple refused the bit of a price drop that Wal-Mart demands.
Originally posted by rasnet
Good deal. Right now the only iPods available in Iowa Wal-Marts (at least the smaller stores...haven't checked the local supercenter) are the ones from HP and that's all I could find on walmart.com, too. I hadn't seen that in the news. Last I heard, Wal-Mart was only getting them from HP because Apple refused the bit of a price drop that Wal-Mart demands.
No, they've been selling Shuffles. I think I read that they were in most stores, not all. But now they will be selling most of the models, if not all. I don't remember exactly offhand.
Ok, I found the link I was looking for:
http://www.macnewsworld.com/story/43858.html
Originally posted by rasnet
Good deal. Right now the only iPods available in Iowa Wal-Marts (at least the smaller stores...haven't checked the local supercenter) are the ones from HP and that's all I could find on walmart.com, too. I hadn't seen that in the news. Last I heard, Wal-Mart was only getting them from HP because Apple refused the bit of a price drop that Wal-Mart demands.
I don't know if that is true, but that just put HP in an even wierder position, being a wholesaler with no power to play with their prices, but having to be a go between for WalMart demands....