toggle

AAPL Stock: 124.53 ( -2.22 )

Printed from http://www.macnn.com

Needham looks at failed HP iPod deal

updated 05:50 pm EDT, Mon August 1, 2005

HP iPod deal

It's impossible to place blame for the failure of the Apple-HP partnership to sell iPods, Needham analyst Charles Wolf said in a report today. "HP's strategy to enhance the iPod with brightly colored paper covers was hardly consistent with the company's desired image of an innovative company. And despite the opportunity to sell the iPod abroad in markets Apple could not reach, HP appears to have confined its sales to US retailers." Of course, other factors may have also affected the decision to end the partnership. "The relationship between Apple and HP undoubtedly deteriorated when Apple began to expand the iPod's presence into retail outlets, such as Radio Shack and Wal-Mart, that already stocked HP's version of the product."

"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."




by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

Comments are closed.

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

Prong PWR Case

Ultimately there's one thing we all want from smartphone accessories; we want options. When it comes to keeping our iPhone charged, w ...

iHome iBT74 Color Changing Bluetooth Speaker

There's no reason why your tech can't look good while doing what it was designed to do. That's the reason that sports cars look goo ...

Logitech Gaming Daedalus Prime Mouse

Logitech Gaming continues to expand upon its peripherals line, with each one looking to fit neatly into a breadth of gaming needs. Bui ...

toggle

Most Commented