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For six years, the Internet Nexus served as my technology blog, but I've since started blogging at the SuperSite Blog instead. If you're looking for the blog, please head there. --Paul

Friday, January 14, 2005

Exclusive: HP halts orders for Apple's iPod music players

Apple Insider:

Hewlett-Packard, which recently entered into a strategic alliance with Apple to deliver HP-branded versions of the iPod under name 'iPod+ HP', has stopped placing orders for the digital music players with Apple Computer, AppleInsider has learned.

Hewlett-Packard is reportedly quarreling with Apple over a lack of price protection offered with the iPods it manufacturers through the Mac maker, possibly explaining why the two companies have yet to set a date for the rollout of the HP-branded iPod photo.

Without a set price protection policy from Apple, HP will be vulnerable to sudden iPod price cuts that would leave it biting the full cost of those reductions. Apple currently offers HP no price protection, whatsoever, on the two models it currently sells.

"I find it striking that even a company that is larger than Apple, and has better distribution channels, can’t get anywhere with them in terms of protection of their business model in the event that price drops take place down the road," said one reseller.

Astonishing.

This shows two things: That Apple intends to use the cachet it's built up for the iPod and that HP was so desperate to bask in the glow of the iPod that it would make what is pretty obviously a really bad deal.

[ Posted at 3:15 PM | Permalink ]