HP to Drop iTunes in 2006?

[MacRumors]

http://www.macrumors.com/images/macrumorsthreadlogo.gif (http://www.macrumors.com)

Macworld.co.uk reports (http://www.macworld.co.uk/news/index.cfm?home&NewsID=13407) that Hewlett Packard may stop pre-installing iTunes on their line of PCs in 2006.

This follows their earlier announcement (http://www.macrumors.com/pages/2005/07/20050729162327.shtml) in July that they would stop selling re-branded HP iPods. According to a statement at the time "reselling the iPod no longer fit with HP's current digital media strategy".

Reportedly, HP had a contractual agreement with Apple to continue bundling iTunes with their HP computers until January of 2006. Beyond that, however, future plans are unclear. HP has not made any announcements, but Macworld.co.uk speculates that HP will adopt a Microsoft Windows Media solution.

[deanbo]

Not such a good thing.

[Peace]

I'm sorry to hear HP is doing that.I think it's a big mistake.But hey! HP usually makes big mistakes anyway.
They should stick to making printers imho.

[gwuMACaddict]

so? can't users just download it anyway?

[grapes911]

Can you blame them? Why pre-install iTunes when you aren't selling iPods? The only reason then put iTunes on their PCs was to cut down on customer support calls of how do I install iTunes. Now not having iPods themselves, its up to Apple to help a user get iTunes installed. Also, iTunes is a money maker for Apple. Whey give someone else advertisement if you aren't getting anything out of it? Sounds like a good business move by HP.

[Arcus]

I have a request for ALL PC makers. Stop bundling all of this crap at all!! Give me a clean system and let me decide.

[Super Dave]

Can you blame them? Why pre-install iTunes when you aren't selling iPods? The only reason then put iTunes on their PCs was to cut down on customer support calls of how do I install iTunes. Now not having iPods themselves, its up to Apple to help a user get iTunes installed. Also, iTunes is a money maker for Apple. Whey give someone else advertisement if you aren't getting anything out of it? Sounds like a good business move by HP.

Microsoft won't give them anything. And if they think they can make money by opening their own store they're sadly mistaken. I'm not saying they should continue to bundle iTunes, but what are they really going to do?

David :cool:

[ericdano]

HP has a Strategy? Since when?

[yellow]

HP has a Strategy? Since when?

To not go out of business. So far... so OK.

[thejadedmonkey]

I have a request for ALL PC makers. Stop bundling all of this crap at all!! Give me a clean system and let me decide.

Amen! When I got my new gateway computer, about 1/2 the bundled crap didn't even work because it was all internet based and the service hadbeen shut down.:mad:

[MacFan782040]

To not go out of business. So far... so OK.

HP is like the #2 computer maker in the world.

[nagromme]

Seems logical. Microsoft has power over HP. Apple has none at the moment. So HP bows to Microsoft. No surprise. iTunes is still a free download with huge mindshare, and bundled on CD with every iPod.

[Peace]

HP is like the #2 computer maker in the world.

that says more than you realize;)

[andrewm]

Amen! When I got my new gateway computer, about 1/2 the bundled crap didn't even work because it was all internet based and the service hadbeen shut down.:mad:

I think that--besides loading down the system--it makes for poor show. The idea of a 'desktop' is to have a loose analogy of a (virtual) desk. When I buy a new desk at the furniture shop, I expect it to be clean, inside and out, after it's been assembled.

What do I find? AOL, Netscape, EarthLink, and half a dozen other 'browsers' on a Windows desktop, plus a bunch of other shortcuts to 'Install trial version of Quickbooks Pro now,' or some such.

Apple handles things a *little* better, maybe, since it's easier to uninstal this junk and I know that it's not loading the system down; I see that it pays the bills--even for Apple--to do some dealings with, say, EarthLink.

[ziwi]

One wonders if this is due to some external pressure from MSFT and their OS discounts...I am not saying it is happening, but you know it is ;) especially with MSFT's new store ariving...

[mkrishnan]

They need to spend more of their effort making stylish and light notebooks that lure unsuspecting female Taiwanese into their grasp (http://forums.macrumors.com/showthread.php?t=167886). :D

[yellow]

HP is like the #2 computer maker in the world.

Well... You have Dell up here at the top.. and then a million miles away, the rest, including HP and Gateway and others. HP's CPU sales were bad so their solution was to buy Compaq. Smart move. :rolleyes: But their new CEO is much better suited to pulling them out of the rut they were in. Anyway.. I didn't say they were out of business. They're still in business. And their stock has come back quite well from where it was a few years ago.

But as far as business models go.. Not too much computer innovation coming from them, right?

[edesignuk]

No surprise, and you can hardly blame them. Why on earth would they give Apple a free helping hand? There's no reason to.

[avkills]

HP has a digital media strategy? Since when. :rolleyes:

I guess nobody was buying them, opting for the real deal instead. Maybe people thought that HP somehow messed with the insides, so they were unsure about buying from them.

-mark

[Peace]

HP has a digital media strategy? Since when. :rolleyes:

I guess nobody was buying them, opting for the real deal instead. Maybe people thought that HP somehow messed with the insides, so they were unsure about buying from them.

-mark

Since the new CEO took over..
I'm guessing HP's strategy is to hang on to Microsofts coat tails.

[csimmons]

Not such a good thing.


...for HP.

[yoak]

Who cares?:rolleyes:

[yoak]

Oh, didn´t think of Steve:o;)

[NewbieNerd]

I have a request for ALL PC makers. Stop bundling all of this crap at all!! Give me a clean system and let me decide.

That, however, isn't a majority view. Most people use PCs for personal use mostly because they are used to them and find them simple, so when they get their brand new computer, they're ready to start using Media Player, MS Word, and Solitaire as soon as it is turned on. They dont' use Apples becase they are scared to branch out and entertain the thought that that pre-bundled Windows junk is the best of the best and the only thing worth using.

Rock on Apple. :cool:

[edesignuk]

Not such a good thing....for HP.Please explain to me why not bundling someone else's software, that someone else will make the money from, is bad for HP?

[MarcelV]

Well... You have Dell up here at the top.. and then a million miles away, the rest, including HP and Gateway and others.

Sounds like you're pretty shortseighted. There is more than just desktop machines in the world. Ever heard of Tandem/Non Stop NSK., owned by HP? Those are the heart of most financial institutes and stock markets (like Nasdaq). Those are premium priced machines with a large profit margin, because you can't run those machines without service contracts.

[EricNau]

I have a request for ALL PC makers. Stop bundling all of this crap at all!! Give me a clean system and let me decide.
Doesn't Apple preload stuff also?
-But I guess we could argue that the stuff that comes with Apple is actually GOOD. (Like iLife) - Only I wish they would stop including the Microsoft Office Test Drive, it's useless, and just a pain to get rid of.

[yellow]

Sounds like you're pretty shortseighted. There is more than just desktop machines in the world. Ever heard of Tandem/Non Stop NSK., owned by HP? Those are the heart of most financial institutes and stock markets (like Nasdaq). Those are premium priced machines with a large profit margin, because you can't run those machines without service contracts.

It doesn't change the fact that HP nearly went under. Besides, they don't bundle iTunes on a server, do they?

[BenRoethig]

I'm sorry to hear HP is doing that.I think it's a big mistake.But hey! HP usually makes big mistakes anyway.
They should stick to making printers imho.

Their mistakes seem to sell alot of computers.

[maya]

No surprise, and you can hardly blame them. Why on earth would they give Apple a free helping hand? There's no reason to.

They have promoted iTunes for quite some years, I believe they did they part as far as Apple is concerned. ;) :)

The word is out, this is all that Apple required. :D

[Rantipole]

Please explain to me why not bundling someone else's software, that someone else will make the money from, is bad for HP?
Because the people buying the computers want it, and it doesn't COST HP anything.

Opposite to what an earlier poster said, HP support WILL start getting phone calls saying "where is iTunes?" :p

[Randall]

I know that this looks like a mistake to iTunes fanbois (I am one of them) but perhaps HP is considering rolling out it's own mp3 player, or worse yet, teaming up with Microsoft and MTV for their little "iPod killer".

I personally wouldn't worry about it though, iTunes + iPod is awesome. And with 70+% of the market share, Apple can finally feel what it's like to squash the competition. No portable player and music store combination can compete with that kind of market share (assuming that Apple doesn't sit on it like Microsoft did with IE.) :p

[Le Big Mac]

so? can't users just download it anyway?

My thoughts exactly. So what? All those iPod buyers will download iTunes almost immediately.

The only thing to worry about is if HP cuts a deal with someone else, MS, Rhapsody, someone, who gets some kind of exclusive. But even then, the power of the iPod is too much.

[Peace]

Their mistakes seem to sell alot of computers.

True! And Microsoft sells a lot of software..

[whooleytoo]

Could this be because, as the Intel Macs approach, and Apple's market share is gaining, it makes little sense for HP to be actively selling a direct competitor's products?

[Peace]

Could this be because, as the Intel Macs approach, and Apple's market share is gaining, it makes little sense for HP to be actively selling a direct competitor's products?

It's more than likely due to Microsoft getting into the music/video download service and since HP is one of Microsoft's "valued partners" they were told to stop offering iTunes..

[iris_failsafe]

I think HP is travelling the same road as IBM, focus on its corporate business and leave as much as possible their consumer market (not counting the printer division, which they always try to sell but is the most profitable part of HP so...)

The new CEO wants that, therefore selling iPods doesn't really fit in. It is not a move against Apple per se.

Carly wanted HP to do everything and she failed miserably, so now they are trying to refocus and so while they decide on whether to leave the consumer market or not they'll just bundle the Microsoft stuff

And about the Ipod killer I think Dell is a more suitable candidate to team up with MS and MTV...

[dr_lha]

Doesn't Apple preload stuff also?
-But I guess we could argue that the stuff that comes with Apple is actually GOOD. (Like iLife) - Only I wish they would stop including the Microsoft Office Test Drive, it's useless, and just a pain to get rid of.

Pain to get rid of? Try dragging it into the trash can. Worked for me.

[Windowlicker]

The way I see this is HP failed benefitting from the iPod sales. So now that they realized their plan failed they have no reason to bundle itunes with their machines either.

I believe this same thing will happen to Motorola.

[EricNau]

Pain to get rid of? Try dragging it into the trash can. Worked for me.
Maybe not that big of a pain, but I did an archive and install once and it came back, and over-rid the current (real) version I had. So I've had to do that twice. (I know, really not that big of a deal)

[Peace]

Maybe not that big of a pain, but I did an archive and install once and it came back, and over-rid the current (real) version I had. So I've had to do that twice. (I know, really not that big of a deal)

I know folks want to save preferences and the like but I would never recommend the archive and install option except in rare ocassions.

[bigandy]

now all HP need to do is realise their PCs are a pile of pish, and start concentrating on things they are, or at least were, good at. like high end printers and scanners.

[grapes911]

I know folks want to save preferences and the like but I would never recommend the archive and install option except in rare ocassions.
Archive and install gives you a clean system like a format and install, but it keeps most of you programs and settings. It is the perfect way to upgrade. I feel sorry for anyone who doesn't use it.

[PtMD]

It doesn't change the fact that HP nearly went under. Besides, they don't bundle iTunes on a server, do they?

Wow... Sources please?

Being a shareholder of many companies, AMD, AAPL, and HPQ included I was shocked to learn they almost went under... :)

Have you looked at their quarterly results? Over the past five years how many quarters were they *in danger* of going under?

Puff the Magic Daddy

[TimmyD]

I'm just glad they finally dumped the HP iPods. I never quite saw the importance of that agreement...

[iHavenolife]

It was only a matter of time, but because of the prior agreements with Apple they can't enter or do anything in the music industry for a year after they dropped the iPod.

[yellow]

Wow... Sources please?

Being a shareholder of many companies, AMD, AAPL, and HPQ included I was shocked to learn they almost went under... :)

Have you looked at their quarterly results? Over the past five years how many quarters were they *in danger* of going under?

Puff the Magic Daddy

Well, ok, "going under" is a bit strong a phrase. Their sales SUCKED the last couple years. Their stock plummeted into the $20s. They were a "troubled" company. It's only been this year (post new CEO) that their sales have rebounded and brought their stock back up (and HOW!). Kudos to the new CEO. He's done a fine job.

[EricNau]

I know folks want to save preferences and the like but I would never recommend the archive and install option except in rare ocassions.
It's what the Apple Genius told me to do, and I didn't have much of a choice. After the 10.4.3 update, the computer just never restarted (never go past the grey start-up screen). In order to keep my files that's what I had to do.

[Peace]

It's what the Apple Genius told me to do, and I didn't have much of a choice. After the 10.4.3 update, the computer just never restarted (never go past the grey start-up screen). In order to keep my files that's what I had to do.

Ok..Ok...Ok...I GIVE! :eek:

It's just that I regularily install/uninstall/reinstall so many different variations of OSX that my apps would get confused..Clean install for moi`.

[Porchland]

I have a request for ALL PC makers. Stop bundling all of this crap at all!! Give me a clean system and let me decide.

That's the problem with manufacturing a commodity product. HP, Dell, etc., can't make money selling computers anymore, so they have all turned into prostitutes for the software companies.

I guess they do what they have to do, but it's nice to use a computer made by a company that markets design, power and a great UI. (And I ain't talkin' about Dell.)

PowerBooks don't have to come preinstalled with crapware for Apple to make money on them.

[boombashi]

Pain to get rid of? Try dragging it into the trash can. Worked for me.

Yeah, Windows software that is preinstalled means you HAVE to run the uninstaller and half the time it doesn't remove all traces of the program, it's like spyware it keeps coming back. They should just throw one of those AOL coasters in the Box and let the user decide what to install.

[iHateWindows]

I have a request for ALL PC makers. Stop bundling all of this crap at all!! Give me a clean system and let me decide.

If you actually want a CLEAN system, don't get a machine with any version of Windows on it. Get Linux or the x86 version of Tiger.

[yellow]

or the x86 version of Tiger.

I'll be an old, old man before THAT happens directly from a PC vendor.

[mkrishnan]

I agree, though, not going to happen. Also not going to happen, sadly, on getting anything like a clean install anytime soon from a PC vendor. :(

[SPUY767]

Instead of just positive and negative ratings for stories, they need an indifferent rating. That's what I'd pick for this story.

[d.perel]

Haha! Let them suffer in Windows Media for the rest of their lives! Only the smart ones will download iTunes!

[EricNau]

Haha! Let them suffer in Windows Media for the rest of their lives! Only the smart ones will download iTunes!
I think even some of the dumb ones have figured out that iTunes Rules! :cool: :p :D

[DaftUnion]

If they want to use windows media player...let them...if they're smart enough they'll learn what's better:rolleyes:

[kretzy]

Their loss. As others have said, the smart people will just download it and the others will suffer an eternity of Windows Media Player! :eek: But really it makes no sense for HP to include iTunes (other than the fact that people may have actually for once appreciated some of the bundled software on their PC :rolleyes: )

[fluidinclusion]

so? can't users just download it anyway?

The problem is that MANY people will only use what is installed on their machines unless they are forced to download. With dialup still 50% of the public, it's not practical to update/download such large applications. Why else do you think people don't update Windows or Mac OS Operating system software?

[Super Dave]

It's more than likely due to Microsoft getting into the music/video download service and since HP is one of Microsoft's "valued partners" they were told to stop offering iTunes..

Oh Microsoft wouldn't do that (http://www.wpi.edu/News/TechNews/990126/microsoft.html). ;)

David :cool:

[fluidinclusion]

I know that this looks like a mistake to iTunes fanbois (I am one of them) but perhaps HP is considering rolling out it's own mp3 player, or worse yet, teaming up with Microsoft and MTV for their little "iPod killer".

I personally wouldn't worry about it though, iTunes + iPod is awesome. And with 70+% of the market share, Apple can finally feel what it's like to squash the competition. No portable player and music store combination can compete with that kind of market share (assuming that Apple doesn't sit on it like Microsoft did with IE.) :p

If Apple was smart, they would do whatever they can to keep HP bundling iTunes. Microsoft learned long ago that you have to keep the product IN THE FACES of the consumer to keep that huge market share. Most won't read tech crap magazines to learn what is the "best" product out there.

In my opinion, Apple should consider paying HP to bundle the app, if necessary.

[fluidinclusion]

Haha! Let them suffer in Windows Media for the rest of their lives! Only the smart ones will download iTunes!


Then iTunes would die.

[zap2]

Then iTunes would die.


No tons of people use iTunes becuz tons have iPod and still people use iTunes with out iPod(Mac and users alike)

[zap2]

No portable player and music store combination can compete with that kind of market share (assuming that Apple doesn't sit on it like Microsoft did with IE.) :p


Even if Apple sits on it what happens

IE example- MS had not made IE (much) better but it still has 80% market share:eek:

MS OS- MS has not made Windows SUPER! yet it still has 90% market share(but MS has tried to make it a littl better)

Apple is pretty set for a while but still have to "look alive" if they want to stay on top

[NYmacAttack]

No tons of people use iTunes becuz tons have iPod and still people use iTunes with out iPod(Mac and users alike)

Yes but when you bundle it with new PCs you are more likely to get people who would use what ever came bundled with their system. I know plenty of people who just use what ever software comes preloaded.

[iMeowbot]

I'm just glad they finally dumped the HP iPods. I never quite saw the importance of that agreement...
It was a good deal for Apple. iPod uses HP technology (most important is the part that lets them get reasonable battery life from HD players).

[bommai]

Since at this time, Microsoft has a full entertainment center package (MCE) and not Apple, HP is probably going to go with a Microsoft solution. Their z55x series entertainment centers are awesome hardware and spec wise. However, they still run MS Windows MCE. So I won't touch them. If this hardware were to run a scaled down Mac OS X or Linux that is rock solid and did what it is designed to do, then I think they will sell well.

Has anyone in the forums seen the z555, z556, z558 series HP Media centers. They are quite nice except for the OS.

The reason I am saying they are nice is because it looks like a home theater component and has component video (which my HDTV requires), DVI, VGA, 7.1 channel audio (for amp), digital audio out, 1000BaseT ethernet, WiFi, Media card reader, 400 GB+ SATA HD, 3 GHz Pentium 4, Built-in ATSC and NTSC tuners, Dual layer DVD+RW, etc. This device can truly replace a Tivo, streaming solutions like Roku Pict Bridge, media center extenders, etc. -Alas windows will be its downfall.

[Cinch]

The problem is that MANY people will only use what is installed on their machines unless they are forced to download. With dialup still 50% of the public, it's not practical to update/download such large applications. Why else do you think people don't update Windows or Mac OS Operating system software?

are you sure about your fact i.e. 50% of people still uses dial up? Be that as it may, people who uses dial up will probably not buy $200 Nano, rather they still go old school and buy CD Walkman. However, I think casette Walkman are way cool! I want one to this for Christmas!

Cinch

[grapes911]

are you sure about your fact i.e. 50% of people still uses dial up? Sounds about right:
http://www.msnbc.msn.com/id/5750968/

Be that as it may, people who uses dial up will probably not buy $200 Nano, rather they still go old school and buy CD Walkman. To be honest, I'm not sure if you are joking or not. :o
Even those behind in technology are still purchasing MP3 players over CD players.

[kretzy]

Then iTunes would die.

I don't agree. Not only will everyone with an iPod have it, but lots of people just use it as their music player on their PC. I always used iTunes on our Dell and I've never owned an iPod and I know lots of people in the same position. Also, I d/led it when we still had dial-up, so I don't see what the big deal is (its only 14MB = about an hour to d/l)

[CellarDoor]

It seems to me that apple might be looking to cut some fat and not dog HP's heels to bundle itunes. I don't imagine anything HUGE will come of it, either way... Although I have to agree that many people use WHATEVER crap comes pre-installed on their system.

This line of thinking doesn't stop me from shaking my head at those poor poor users with WMP :rolleyes:

[budugu]

Well... You have Dell up here at the top.. and then a million miles away, the rest, including HP and Gateway and others. HP's CPU sales were bad so their solution was to buy Compaq. Smart move. :rolleyes: But their new CEO is much better suited to pulling them out of the rut they were in. Anyway.. I didn't say they were out of business. They're still in business. And their stock has come back quite well from where it was a few years ago.

But as far as business models go.. Not too much computer innovation coming from them, right?

Dell is not that far away from HP. And to HP's credit it still leads all others in Asia (which is THE fastest growing market). Compaq was bought because like the erstwhile IBM, they did not have any significant "consumer sales". The idea was to build every thing from Printing (computers, digital cameras, scanners etc). One thing for sure is that it is border line impossible to match HP priting, from the cheapest injet they feel and are of more qualiy than their competition in every aspect of printing (price? i am not that sure).

[budugu]

I don't agree. Not only will everyone with an iPod have it, but lots of people just use it as their music player on their PC. I always used iTunes on our Dell and I've never owned an iPod and I know lots of people in the same position. Also, I d/led it when we still had dial-up, so I don't see what the big deal is (its only 14MB = about an hour to d/l)

Just mind games! Nothing else! HP gets nothing from it (apart from ill will from MSFT). They said Screw it. Use of WMP / itunes+Quicktime is more dictated by the content providers, and the gadgets that you have. I use to use WMP for filling my pocket pc etc and itunes for ipod utill i got Xplay. NOw i just drag and drop.

[d_and_n5000]

Hmmmmm......oh well. HP makes pretty good computers. Nevermind the software, of course. I was at my aunt's house about 2 months ago for the day, and her work-issued laptop was an HP. Pretty awesome computer. The only issues I had were software issues, one from Apple, and one for Microsoft. Wow, they were tied for something once! :eek: iTunes was on the computer, and I couldn't install version 6 to upgrade it. Something about server issues. The other was that when I shut the lid, it went to sleep, and after I reopened the lid, I'd hafta go into the internet settings in IE to get the wireless internet back on, it just quit working. Minor annoyances, really. The point of this is, HP makes pretty good computers, and it is a shame to take iTunes off.

[Chundles]

Meh, so a company stops bundling iTunes - it's still free, people will still download it or use it with their iPods. iTunes isn't going to sell the iPod, the iPod will get iTunes out there and running on probably 40 million Macs and PCs around the world.

I never, ever understood HP's motivation going into this deal. Did people really buy the HP version? We didn't get the down here but I would have thought that most people would want the one with all the Apple branding, to get the "real" iPod. Little kids would be seriously pissed off if all their friends got Apple iPods and they were the only one to get the iPod with the funny HP logo on the back.

[yellow]

One thing for sure is that it is border line impossible to match HP priting, from the cheapest injet they feel and are of more qualiy than their competition in every aspect of printing (price? i am not that sure).

I'm with you 100% on that score.. Over the years I've seen a buncha different printer manufacturers come through our doors (Lexmark, you SUCK!) and there are still 2 workhorses around, the HP4100s and the Apple 16/600s.

[seashellz]

I thought HPs decision to stop selling iPods was becasue of a spat with Apple over roylaties. Apples loss.

Jillions of dollars of free advertising, via product placement, down the drain-Apple seems hell bent on snatching defeat from the jaws of victory.
HP is EVERYWHERE.

Seeing stacks of HP iPods at Costco, Office Depot, Wallmart, the roadside vegetable stand, Joes Gas-N-Go, and other places that had never even heard of Apple was thrillng to see- Apple was no longer small potatoes.
So what if iPods are doing well-they could be doing even better-and the bleed off would make sales of their computers jump, certainly.

[kcwookie]

You can't swing a dead cat without hitting an iPod. I think that HP is the one losing not Apple. Unless Apple does something REAL stupid iTunes will still be the top dog for a long time to come.

[grapes911]

You can't swing a dead cat without hitting an iPod. I think that HP is the one losing not Apple. Unless Apple does something REAL stupid iTunes will still be the top dog for a long time to come.
Um..What is HP losing? They don't gain anything by bundling iTunes with their computers.