[Eriamjh]

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.

As a result of the dispute, HP has reportedly refuse to place any further orders for Apple's iPod. "HP won�t re-order manufacturing until Apple is willing to sit down at the table and agree to something that�s reasonable for both parties," a source close to the company said.

During Apple's Q1 2005 financial conference call on Wednesday, Apple CFO Peter Oppenheimer said that HP-branded iPods accounted for only 7% of the 4.58 million iPods sold during Apple's December quarter. Curiously, this figure rose just one percent from the previous quarter, even though both parties vouched that the December quarter would be marked by an increased presence of HP's iPod offerings.

HP's online store is currently out of stock of the 20GB iPod and retains only a limited supply of the 40GB iPod. Sales representatives for HPShopping.com confirmed that they ran out of 20GB iPods about a week ago and do not expect new shipments anytime soon.

Representatives from HP failed to return repeated phone calls for comment over the past 48 hours.

Apple Computer has a long standing policy of not communicating with AppleInsider, and hence declined to comment.

I wonder if people out there ReALLY want the Apple version even though they are the same? Wouldn't that be great brand loyalty?

I figured once the HP iPod got out in all the retail channels that it would quickly start to outsell the Apple iPod. Guess not.

[Wiskedjak]

I really never saw the point of an HP branded iPod.

[ManOfSteal]

Haha, niiiiicccceeeee.

[ManOfSteal]

Originally posted by Wiskedjak:
I really never saw the point of an HP branded iPod.

I did. I like knowing the fact that every HP computer out the door has iTunes bundled with it and on the Desktop. That leads to iTMS purchases more often than not, which leads to potential iPod sales, which leads to a nicer car for Steve Jobs in the long run.

[tooki]

Originally posted by Wiskedjak:
I really never saw the point of an HP branded iPod.

The point is that HP has a MUCH larger retail distribution network than Apple, so the HP iPod is being sold in many more stores than Apple's could hope to be.

tooki

[Disgruntled Head of C-3PO]

Originally posted by tooki:
The point is that HP has a MUCH larger retail distribution network than Apple, so the HP iPod is being sold in many more stores than Apple's could hope to be.

tooki

yet they only accounted for 7% of sales.

[driven]

Hey Apple ... I know that we are only selling a small number of iPods, but why don't you kick in and make the deal even sweeter for us or else.

Sheesh .... <sigh>

I deal with this company (HP) a lot. Apparently they are a PITA with everyone ....

[brapper]

I think Apple has realized that the name iPod is enough at this point to sell the things, and they really aren't in need of help from HP.

[cenutrio]

Ok, I had to buy a couple of 20 GB iPods for christmas and could not find any. i end up buying a couple of HP iPods for the same price.

[SeSawaya]

Originally posted by cenutrio:
Ok, I had to buy a couple of 20 GB iPods for christmas and could not find any. i end up buying a couple of HP iPods for the same price.

Apple.com?????

[vmarks]

Originally posted by tooki:
The point is that HP has a MUCH larger retail distribution network than Apple, so the HP iPod is being sold in many more stores than Apple's could hope to be.

tooki

I know folks who were just waiting for it to pop up in Staples so they could do the Staples rebate/coupon for anything in the store- easy way to rack up big discounts on the iPod.

[driven]

Did it ever make it into Staples?

I did see a few 40GB models on the clearance table in BJ's wholesale in November. They were going for like $350 - $375. A few were open-box.

[Wiskedjak]

Originally posted by tooki:
The point is that HP has a MUCH larger retail distribution network than Apple, so the HP iPod is being sold in many more stores than Apple's could hope to be.

tooki

If that was the point, why is Apple treating HP so crappily (ie: no price protection)

[cenutrio]

Originally posted by SeSawaya:
Apple.com?????

I need them fast, very fast (24h)

[Dalhectar]

The best thing I saw out of HP and their deal with Apple was with their Media Center PC, which is the only Media Center OS PC that allows for the purchase of iTMS music within MS Media Center. HP had to write its own Media Center module to support iTMS, and it doesn't integrate with MS' music features, but the fact there was ANY support was a good step.