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HP fights with Apple over the iPod, and HP ends up losing…

Sunday, January 16th, 2005
by Dave Taylor

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According to sources (Apple Insider and The Unofficial Apple Weblog), Hewlett-Packard has stopped buying iPods from Apple Computer because of a contract dispute. The analysis in the Apple community is summed up by TUAW’s comment that “HP iPods accounted for only 7% of the 4.58 million iPods sold last quarter. Might this have something to do with the fact that Apple doesn’t appear to be losing any sleep over HP’s lack of [iPods in] stock…?”

Apple’s in the wrong here, assuming that the reports are accurate, but HP’s the company making the wrong strategic moves in this situation, not Apple. Here’s why…

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