HP to Sell Version of Apple’s iPod Player
Hewlett-Packard Co. said Thursday that it would sell a version of Apple Computer Inc.’s iPod portable music player and bundle Apple’s iTunes music software with its PCs and laptops aimed at consumers.
Palo Alto-based HP is expected to sell the portable players under its own brand this summer, but Apple will manufacture them for HP and control the technology. The agreement was announced at the International Consumer Electronics Show in Las Vegas.
The deal is a coup for Cupertino, Calif.-based Apple and marks the first time another company has agreed to sell the iPod players, which lead their category with more than 2 million sold.
It’s a defeat for San Diego-based MusicMatch Inc., whose music software has been bundled with HP Pavilion and Compaq Presario computers.
Bundling iTunes with those computers could also boost sales of downloadable songs at Apple’s iTunes Music Store, which is built into the software. The iPods are the only players that work directly with the store, which uses proprietary anti-piracy technology that Apple has refused to license to other manufacturers.
“As the industry balkanizes by offering digital music wrapped in a multitude of incompatible proprietary technologies, consumers will be reassured in getting the same unparalleled digital music solutions from both HP and Apple,” said Apple Chief Executive Steve Jobs.
Apple shares rose 77 cents to $23.36 in Nasdaq trading Thursday, while HP shares jumped $1.33 to $24.69 on the New York Stock Exchange.
