08/01/2005, 5:50pm, EDT
Monday, August 1st
Needham looks at failed HP iPod deal
"In recent quarters, HP’s sales of the iPod amounted to about 5% of total iPod sales. With HP and Apple selling in many of the same stores, HP’s incremental contribution was probably close to zero. In short, HP’s departure is unlikely to have more than a nominal impact on iPod sales."
"In the US, at least, Apple discovered that HP’s broader retail presence was redundant. In addition, Apple reportedly did not extend price protection to the iPod’s sold by HP. Price protection refers to the practice of compensating retailers for any price reductions on a product held in inventory."
"In our opinion, HP missed a golden opportunity to capture a material percentage of iPod sales by not rolling out the diminutive device to its retail outlets abroad."
Filed under: iPod








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