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HP to Stop Selling Apple’s iPod

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August 1, 2005 - Hewlett-Packard has announced that they will stop selling Apple Computer’s iPod. The partnership between HP and Apple, which was announced in January 2004 at the Consumer Electronics Show, was dissolved as part of an effort by HP CEO Mark Hurd to dismantle former CEO Carly Fiorina's legacy at the number two computer maker.

'HP has decided that reselling iPods does not fit within the company's current digital entertainment strategy,' Apple spokeswoman Natalie Kerris said. 'As a result, HP plans to stop reselling iPods by the end of this September.' HP plans to continue selling other digital entertainment products including its lineup of televisions, digital cameras and Media Center PCs. According to HP’s original agreement with Apple, it cannot sell digital music players that compete with the iPod until August 2006.

HP’s sales of iPods accounted for 8 percent of iPods sold last quarter, according to information provided by Apple in a recent earnings conference call.

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