Originally posted by Ransath
Okay - a short business lesson to you folks out there that think this will somehow impact iPod sales.
First off - do you fully understand what Apple is doing here? They WILL BE selling the iPod, just with a slightly different package. Now, who do you think is actually going to manufature this player? Apple!!! NOT HP!! Apple will just be "reselling" it to HP. Apple will get the lion's share of the profit of every hPod sold. HP will get a bit of the profit, but Apple is the one that will make out.
That's what makes this such a great deal for Apple. They still control the manufacturing and the quality. They still reap the majority of the profits.
So what does HP get out of this? As we all know, most PC users are clones (bear with me). They just buy whatever the big comany is touting as their best stuff. So, if HP says - 'hey, our MP3 player is the best (which it will be)" all those clones will buy it from HP. Also, HP doesn't have to bear the cost of setting up it's own online music store. So, HP spends NOTHING on manufacturing and software costs, they earn a nice little profit on each hPod sold, they offer their customers an HP branded sloution for the digital music wants, and all they have to do is a little promotion.
That is what is called a WIN/WIN situation!!!