James Delahunty
31 Jul 2005 8:46
Earlier this week, US computer firm Hewlett-Packard ended a deal with Apple that was in place since early 2004 to resell Apple's iPod device. The deal to sell the devices had been secured by the former HP chief executive, Carly Fiorina, but she resigned earlier this year. Now HP is reshaping its plans for the company under new chief Mark Hurd. iPods sold by HP accounted for about 5% of all iPod sales. The growing popularity of the device has lead to massive profits for Apple.
As well as dropping the iPod, HP will also cut about 14,500 jobs, about 1 in ten of it's entire workforce worldwide. "HP has decided that reselling iPods does not fit within the company's current digital entertainment strategy," said an Apple spokeswoman. However, HP announced last year that it would pack iTunes with it's PC's and has vowed to continue adding the software.
Source:
BBC News