IPod will be Blue and not called the IPOD
From ZDNET.COM
Apple will manufacture the player, which will not have the iPod name, but will have the same design and features as Apple's third-generation iPod players, Phil Schiller, senior vice president at Apple, said in an interview. Also, the HP music player will come in "HP Blue," he said.
"The way we look at it, HP will be reselling an iPod device," said Schiller, who noted that the device will display the Apple logo at start-up and will work with all of the accessories made for the white-hued Apple varieties.
In addition, HP will start pre-installing Apple's iTunes on its consumer PCs and desktops. HP previously had said it planned to enter the digital music player and music store business, though sources familiar with the company's plans said partners would likely be involved.
The deal comes amid a broader announcement from HP of a number of consumer electronics products.
Schiller said HP brings a large sales and marketing effort centered around digital entertainment and has a large customer base. "HP has a lot of customers, and they are a great company, a big company," he said. "They'll promote this iPod-based device and the iTunes music store."
The deal with HP involves only the traditional iPod design and not the new mini models, Schiller said, though he added, that's "obviously something we can look at in the future."
Schiller would not say whether Apple may look to craft similar deals with other computer or electronics makers. While that part of the deal is not exclusive, Schiller said HP's promotion of the iTunes Music Store through its PCs is a "multiyear, exclusive" deal.
HP CEO Carly Fiorina said the company considered a number of alternatives before partnering with Apple. "We explored a range of alternatives to deliver a great digital music experience and concluded Apple's iPod music player and iTunes music service were the best by far," Fiorina said in a statement. "By partnering with Apple, we have the opportunity to add value by integrating the world's best digital music offering into HP's larger digital entertainment system strategy."
Apple CEO Steve Jobs said the move will ensure more consumers use iPods.
"Apple's goal is to get iPods and iTunes into the hands of every music lover around the world, and partnering with HP, an innovative consumer company, is going to help us do just that," Jobs said in a statement. "As the industry balkanizes by offering digital music wrapped in a multitude of incompatible proprietary technologies, consumers will be reassured in getting the same unparalleled digital music solutions from both HP and Apple, two leaders in the digital music era."
On its own, Apple has sold more than 2 million iPods, including 730,000 last quarter. The company also announced this week plans for the iPod Mini, a smaller player that will cost $249 and uses a 1-inch hard drive with 4GB of storage.
HP and Apple did not say how much the HP-branded iPod will cost or how it will differ from the Apple-branded models, but the companies said it will be "competitively priced to other digital music players currently available. "