CubaTBird said:
Remember when apple had all those apple clones like power computer? Why did they start selling out like that? Because people were buying macs at the time.. Its happening again.. People are starting to buy ipods like crazy, now apple is releasing it to third parties which i believe hp will NOT be the only ones to adopt it. This could either go down in history as something really good, or bad.. As they say, history does repeat itself from time to time.
This is nothing like Apple licensing the Mac OS and companies building computers that were better speced and cheaper than Apple's offerings. Mac clones only served to canabilize Apple's offerings, it did not expand their market share as they hoped it would. Cloning hit the Apple bottom line big time.
Apple hasn't licensed the iPod OS to HP for HP to build a competing product. HP is simply selling the Apple iPod and putting their name/logo on the SAME iPod Apple sells.
I don't see how this can be a bad thing for Apple. They gain access to distribution that they could only dream about before. They gain access to PC users who may have never considered an Apple product. They gain access to better shelf space at retail and outlets that Apple products have never been in (Walmart, Costco to name 2) They have iTunes and Quicktime pre-installed on millions of PCs and as the default music player. They keep Microsoft's music offering off of HP and Compaq PCs. The only thing they lose is a few margin points on the iPods HP sells since Apple will probably sell more wholesale than at retail. Even that is arguable. Bottom line, they will sell more iPods with HP than without.
Let's not forget about the iTMS. Don't buy Apple's BS, this can be a huge money maker for them as the market grows and if they can retain market share.