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HP Branded iPod and Music Store

Re: That's the Point

Originally posted by mhouse
I think that is the point of the entire deal, man. HP will be the company that caters to the low-end player market so Apple can sit back and rake in the in the high-end margins.

Whatever the HP product is, it won't be an "iPod" exactly. It will be some cheapie player that is compatible with iTMS. Possibly with Apple design help.
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I think the CNET article backs up my position that Apple would not allow a cheesy knockoff version of the iPod to be produced. It would hurt sales of real iPods and ruin the reputation of the beast as the "best". Of course, that means the price remains high no matter who sells it.
 
What this deal is not...

This partnership is not about Apple selling computers or promoting Apple beyond the iTMS.

HP will surely have their name all over this player with scarcely a mention of Apple, it is after all, their product.

Think of a restaurant that sells it's own house wine or beer. Most of these beverages are repackaged by other manufacturers. Only in small small print on the back label does it even mention the orginal manufacturer, if at all.

This will probably be the case for this product. HP is buying them after all, they can dress them up however they see fit, which will probably include heavy branding of their own.

That said, iTunes on every HP computer, Quicktime on every HP computer and a flurry of new iTMS users is great news. To say nothing of the enormous new revenue stream. Great all around but not a trojan horse as others on this thread have suggested.
 
Originally posted by Lanbrown
Look at where most people buy a PeeCee from? Gateway sold a lot of low-end machines, which had practically no profit to them as, that market was so fierce. Dell is in the low-end market as well.
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Most of the PCs I've seen people buy are Dell, and they are not the lowest configuration. The last time I saw someone buy a Gateway desktop brand new was a 486 :eek:
 
Illusion of Choice

I think the benefit to Apple is illusion of choice. People don't like to think they only have one option. That's why many companies manufacture more than one brand of the same product. It's why Visa and Mastercard both exist even though they're basically the same thing owned by the same companies. You get a "choice" so you don't need to turn to American Express or Discover.

So that's Apple's first advantage: People, especially PC people, have a "choice" of two very nice MP3 players. HP gets some cachet from the deal, plus profit.

The second advantage is instant new computer saturation from 5% to 30% for Apple's iTunes. This establishes a very powerful presence and lends legitimacy to iTunes and to "both" types of pod.

Apple is playing to win the music business, but its market position has been at best 5% of the market. That's changing fast. Superior product + social proof + "choice" = WOW.
 
i don't know about this one. as we know from microsoft, just because you are the biggest doesn't mean you are the best. i really hope this doesn't hurt the overall allure of the ipod. it is a well designed device, but the honest truth is that the real reason it is so popular with my friends is that is the THE player to have, simply the coolest. if this HP deal puts a million more clones out that, i would have to think that this could hurt the "coolness" factor the ipod has.
 
that makes a lot of sense for apple! considering there will continue to be new players to the field, this is a great way for apple to keep making money on mp3 players even when it's not their logo on it - either way apple wins.
 
the real reason it is so popular with my friends is that is the THE player to have, simply the coolest. if this HP deal puts a million more clones out that, i would have to think that this could hurt the "coolness" factor the ipod has.
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This is why i'm guessing the new from factor - the mini pod - won't be available for as the HP. It is the new "coolness".

I think this is more about ACC and Quicktime than the ipod.
 
Ok, hPod seems to be the obvious nickname, but I don't think it rolls off the tounge very well...

How about HiPod?

(Or, if you like "HighPod" since I think this idea must have been conceived one night when Carly and Steve were hitting the bong)
 
It seems like the HiPod will truly just be a rebranded iPod, so I'm wondering if the differentiation will be in the sizes.

Maybe HP won't get to offer a 40Gb, or their low-end will be the 10Gb instead of the 15Gb?
 
Either in size or Apple is gonna bring out a 4th generation in a bit that HP won't get. I don't think they are gonna get the entire IPod line.
Either way this is huge. I don't think Apple is making that much money off of IPods anyway, they smell a bigger market in the ITMS being spread more. They said when they started that they would need at least a 100 million Songs to be sold in order for it to be profitable. Now that number doesn't seem that far away.
Now if they get the ITMS to every place else in the world and bring out some below 200$ IPods, Apple is going to be the Microsoft of Online Music and Mp3s. If they aren't already.

<edit: typos>
 
Originally posted by spankalee
Ok, hPod seems to be the obvious nickname, but I don't think it rolls off the tounge very well...

How about HiPod?

(Or, if you like "HighPod" since I think this idea must have been conceived one night when Carly and Steve were hitting the bong)
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Hmmm ... slightly clumsy, one step away from being elegant ... yup, that's an HP product!

Besides, calling it "HPod" is probably giving it too much credit. Who wants to bet the real name will be "DMP-HPB-507"?
 
This is wonderful news! This is going to help both Apple and HP tremendously. As long as Apple protects their profit margins they should do very well, but we obviously don't know the really important details of the deal.

It will also be a benefit to the customer, who often buys junk and then gets frustrated by it. I was on a plane flight home from North Carolina over the holidays, and the woman next to me asked me if she could look at my iPod, so I let her hold it. She was amazed, and called it a work of art, and then said she had ordered one for her boyfriend's PC after looking at them online. I started to gush about how easy it was to use iTunes, and to use that over MusicMatch, and so on... and then she mentioned that she hoped Dell would be able to ship it out quickly, since he was really looking forward to trying it out.

Let's just say I shut up pretty quickly. You know, if you have nothing nice to say...

She also thought my 12" Powerbook was made by IBM. Oh well, that's your average consumer!
 
No one has mentioned this but this puts Apple in a pretty good position for companies like ReplayTV and Tivo to license quicktime to stream AAC tracks. Also chances that car stereo manufacturers will allow for AAC CDs to work without an ipod. Eventually, anyone who wants to buy an ipod will have bought it already. Some people do not want to leave their CDs behind and will use walkmans and car stereos for music.

In the long run, Licensing will make money because other corperations will see the results of having HP and AOL users buying AAC tracks.

With a potential stronghold on the online music sales market, Apple could be in a position to renegotiate terms with the record labels to make more money off songs sold. The iTMS may then become the cash cow no one thought it would be.
 
Re: What this deal is not...

Originally posted by greenstork
HP will surely have their name all over this player with scarcely a mention of Apple, it is after all, their product.
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Not in this case they won't. This is straight from Phil Schiller... "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.

So basically it will be a blue iPod with an HP logo on the back, otherwise it will be identical to it's Apple twin.
 
Re: iTMS in front of even more eyeballs

Originally posted by restiffbard
I'm less excited about an HP iPod than I am pre-installing iTMS on HP PCs. open up the iTMS and at the top are ad banners highlighting new music and the like. That ad space could just as easily highlight new products from Apple. PC people would see it everyday. There comes a point where you just have to click it and get whisked away to store.apple.com. You've got this really impressive product from Apple, the iPod and iTunes. Now, maybe you might look into a powerbook for your kid before he heads off to school. Or an iMac for the little one. We'll just crank up the reality distortion field and channel it through iTMS.

And, I think that HP will make a point of mentioning that their HPiPod is built on or with or made by or what have you, Apple.

"the HP personal media player, built on the award winning strengths of the Apple iPod, now from your favorite PC maker" or whatever.

"buy an HP xjqr7 (or whatever they call them) today and get an iPaq PDA and Apple designed HP iPod for 10% off."

"iTunes inside."
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there is nothing unique about the ipod. especially nothing "inside" anyway... it is built of off the shelf parts...

even the software isn't owned by Apple... i wonder how the software licensing will be transferred over to HP.
 
Smart move Apple, congrats.

I must say, this is the first Apple related thread I have read all day that hasn't mentioned the iPod mini pricing - OOPS, I just spoilt it. LOL.
 
HP Blue

Originally posted by srobert
Here is the hPod, in all it's familar and reassuring grey PC glory ^_^ :

EDIT: Anyone know what HP blue is so I can update my fake? ;-)

I just PMed you the Hex numbers for HP blues.

To everyone else, as far as this news, the biggest part is the iTunes/Quicktime on the desktop.
That puts 30million+ users with a link to Apple on their desktop.
That is huge for mindshare and potential growth.
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Originally posted by the_mole1314
What's next? The new iHP, now running PPC G5 technology and OSX?
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Well... given that HPaq has buried its PA-RISC and Alpha processor families (a fairly half-decent 64-bit chipset and a seriously kick-ass 64-bit chipset) in favor of the Itanium (a seriously lame 64-bit chipset that's been plugging along for years and still lacks any meaningful market share)... I think they could really benefit from a better CPU, don't you? :)
 
Re: Re: See ya Dell!

Originally posted by iChan

Dell will realise soon enough, that Dell DJ is going nowhere and they'll be begging to take back the iPod... anywhere the money is to be found...
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Agree completely with that...but Michael Dell's only real claim to fame is that he made PC's a commodity, he and his team are great at supply chain stuff, but not new products, hence my Adios Dell DJ comment. (Said so defiantly as I sit here at work typing on my Dell PC...sigh)


P.S. iChan - my Mom's a Dubliner, and I've got loads of family over there...shoot me a PM some time - HughDogg
 
Originally posted by Diatribe
Either in size or Apple is gonna bring out a 4th generation in a bit that HP won't get. I don't think they are gonna get the entire IPod line.
Either way this is huge. I don't think Apple is making that much money off of IPods anyway, they smell a bigger market in the ITMS being spread more. They said when they started that they would need at least a 100 million Songs to be sold in order for it to be profitable. Now that number doesn't seem that far away.
Now if they get the ITMS to every place else in the world and bring out some below 200$ IPods, Apple is going to be the Microsoft of Online Music and Mp3s. If they aren't already.

<edit: typos>
Click to expand...

Actually, they do make a relatively obscene margin on iPods.

I seem to remember reading it's over 20%
 
This should go on the back of HP's Pod. ;-)

applehp.jpg


Patrick.
 
I did not know there was such thing as "HP Blue". Maybe Big Blue should sue. (what a rhyme...)

BTW...I wonder why IBM doesn't get a version of the iPod? Anyone see the IBM branded Palm Pilots? They were Palm V's but black. Very sweet, and you could get a bay for the Thinkpad that slid out and was a cradle. (very handy before Bluetooth)
 
I was watching FCNN or whatever the financial news channel is a few weeks ago and they had Carly Fiorina on discussing all the usual numbers and so forth. I was very impressed with what should had to say and basically defended the analysts claiming dell was beating them. She knows what she is doing! The lame thing was she was constantly being asked questions to the effect of "your a woman, do you know what your doing" and so forth. I would have rather heard more of her great ideas. I think because of the way the talking heads in business operate and the fact that she is a woman in power scares alot of people. My belief is that she is one of the most powerful people in the computer world and just made a new buddy in steve jobs (certainly one of the most powerful as well). It was clear in her interview that she has a killer instinct and plans on putting the hurt on dell. I think apple is also a bit tired of dell borrowing ideas and claiming innovation. Definately two of the most recognizable companies in the world were brought together to defeat a common enemy. I have heard less then stellar things about the quality of HP computers, and certainly think that compaq is crap. But you can be certain that if i were to recommend a computer to a family member who despite my persuasion wouldn't buy a mac i would steer them to HP. I also find interesting the vast amount of money HP spends on R and D. Likewise they brag regularly about HP computers being responsible for Shrek. Could a possible marraige of Pixar to some HP technologies come in the future as well.

One last thing...

If the numbers are right thats 40 million HP computers. Adding in the 25 million or so AOL users, and all computers that had AOL preinstalled. Be chunk of iTunes bait.

------
too crazy for boys town, too much of a boy for crazy town
 
One more thing

Now I finally feel like the keynote is complete...albeit 2 days later.

But there's one more thing....iTunes is gonna be preinstalled on 5%+18.3% of all new computers sold....

I've got that post-keynote euphoric feeling...
 
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