Why the iPod no longer needed HP

Discussion in 'MacBytes.com News Discussion' started by MacBytes, Jul 31, 2005.

  1. macrumors bot

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    #1
  2. macrumors 6502a

    fixyourthinking

    Joined:
    Oct 24, 2002
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    Greenville SC
    #2
    Misinformation

    From the article:

    No, the iPod was already in some 7800 locations worldwide. The HP Deal expanded that to almost 14,000 and it stands close to 17,000 locations today.

    Even with Radio Shack picking the Apple iPod up (instead of selling the HP iPod) - they are not doing it in full distribution.

    Again, wrong, the blue iPod Carly held up at a press conference was a painted iPod. It was never intended for distribution. HP and Apple decided jointly that more iPods would sell if there was no physical difference. Besides ... the powder blue was ugly.

    At 5% the profit HP saw was close to 9.1 million. I HARDLY doubt they see close to 10% margin on ANY product other than ink!

    No, both were always out of stock at peak demand times.

    Most notable analysts have called it correctly - it was an Anti Carly move and part of a massive HP restructuring ... it had nothing to do with margins or with feeling "jilted"

    Side note: HP also brought the very cool tattoos and tattoo paper and templates AND connectivity to their printers to print photos and playlists.
     
  3. macrumors G4

    Applespider

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    #3
    HP are still keeping iTunes pre-installed on their PCs which to be honest, I think is more useful than them selling iPods.
     
  4. macrumors newbie

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    austin, tx
    #4
    The HP iPod was nothing more than a stopgap measure by HP to have an MP3 player in the face of its PC-side rivals [namely Dell]. Instead of buying an odm product from Taiwan, it struck a deal with Apple. A sweet deal with Apple if you think about it: it was called the Apple iPod by HP. Any advertising or shelf display for the product mentioned Apple by name. Apple got iTunes installed on every one of HP's consumer PCs.

    It was also a nice way for HP to give the finger to MS for its "music innitiative". But I would imagine the next MP3 player from HP will use WMA and "Plays for Sure".

    The HP customers who bought iPods from HP will still get to use the best MP3 player on the market and iTMS. Apple sold a bunch of iPods and gained new iTMS customers. HP had an MP3 player. Everyone gained from this.
     
  5. macrumors 68000

    njmac

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    #5
    Ah, the sweet irony. Although, it could always be said that Apple did have a solid, well regarded brand name.
     
  6. macrumors 65816

    GodBless

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    #6
    I think it is great news that HP will no longer sell iPods. Why? Well the answer is simple. The iPods are such an asset to retail stores since they are a fad product that the retail stores that distribute HP iPods will not want to stop selling iPods even though HP won't be the retail store's provider. This means that retail stores will go to Apple and ask to be a authorized retail provider which means that Apple will have an easy foot in the door to sell other Apple products such as the Mac mini! :eek:

    Pretty cool isn't it?
     
  7. macrumors 6502a

    fixyourthinking

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    #7
    I would go with that, but wouldn't make the stretch into computers!
     
  8. macrumors 65816

    GodBless

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    #8
    I said that their hardware has an easy foot in the door since the retail stores will already do relations with Apple. What I didn't say is that some, not all, of the stores will pick up other Apple hardware. Statistics would guarantee that at least some stores will pick up other Apple products besides just one set of products (the various iPods).

    If Apple encourages retail stores to sell other Apple products then the chances of stores that sell Apple iPods also selling Apple computers will be even higher. I'd say that as much as 33.3% of the stores that become Authorized Apple Resellers (to sell the iPod) will also sell Apple computers. If Apple encourages them to sell other Apple hardware then about 50% of the stores that become Apple Authorized Resellers will pick it up.

    Apple needs to play it smart here with their business strategy and I am very hopeful that they will. :)
     
  9. macrumors 6502a

    fixyourthinking

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    #9
    Walmart and Radio Shack are very doubtful to EVER sell "other apple hardware" unless it's something like the iPod that is cross platform and is just a gangbusters seller like the iPod. These two chains accounted for close to 7500 exclusive HP locations - granted some Walmarts and some radio Shacks are selling Apple iPods now - but it's doubtful they will ever sell even the Mac Mini.

    By the way, great fantasy stats! Reality check?
     
  10. macrumors G5

    nagromme

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    May 2, 2002
    #10
    It would be a change for sure--but there ARE cross-platform stores that sell Macs too.

    FWIW:
    http://www.appleinsider.com/article.php?id=1191

    "If iPod sales at RadioShack boom -- and they are expected to -- sources say both companies will be open to a pilot program that will test sales of Apple's Macintosh computer line in the electronics stores. RadioShack currently markets computers from both HP and Compaq, but its arrangement with HP is said to expire at the end of the year."

    Now, I don't expect Windows PCs to be gone from Radio Shack, even if HP/Compaq does not renew. SOME PC maker will be there. But could half that space--or even just one station--go to Minis and iMacs? Maybe so.
     

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