Rumour: HP's iPOD Coming Soon

[Jason Dunn]

An anonymous source contacted me with some information about the forthcoming HP iPod. I have to admit I was hoping for something just a bit more exciting - there will be two models, a 20 GB and 40 GB version. The pricing will be $299.99 USD and $399.99 USD respectively. The 20 GB version will not come with a dock, but the 40 GB will. They're exactly the same physically as the Apple iPods, but will have the HP logo on the back.

Does this make anyone else yawn? I was hoping that HP would release a slightly different version, maybe a few new features or something to make it stand out from the normal iPods. Like, say, WMA playback? :roll: So it seem this was just marketing hype, nothing more. I really dislike vapid marketing ploys. :evil:

[Chris Gohlke]

You kill us Jason, I was sitting here refreshing hoping for the Shuttle contest posting, I see a new story pop up and it is just this. :wink:

Bring on the Shuttle (BTW, I was already specing out the hardware I might load in it if I win). Hey a 1 out of 179 chance is not that bad. :D

[Jason Dunn]

Hah! I actually forgot about the drawing until you mentioned it. Ok, here we go...(goes to www.random.org...)

[dartman]

I was watching too. Heard Outlook tell me there was email and I hoped it was my winning email.

I'll check back.

dart

[Mojo Jojo]

Truthfully this promotion is very disappointing.

With nothing being significantly different between Apple and the HP model (other then color) your biggest draw is brand name. With all the brand recognition lately for Apple I find it a hard sell that those easily influenced by brand would go with HP.

But that is just an opinion, so my thoughts may not be like others.

However... the little voice in my head keeps saying that surely HP has had the same thought, what am I missing? What makes this deal worthwhile for HP? The Joe and Martha six pack effect? If it says HP it should work better with my HP computer? Or is there something more?

My voice says that Apple told them a secret... something in the works that isn't public yet but gives HP incentive for being a early partner. Is WMA in the future? Who knows... but I have to listen to that little voice, he warned me about not eating the fuzzy burrito in the fridge, I'll give him credit for that.

[James Fee]

An anonymous source contacted me with some information about the forthcoming HP iPod.
Jason, didn't HP say no more rumors? Will you have to "moderate" your own post by the end of tomorrow?

:grinning devil:

[Jason Dunn]

Jason, didn't HP say no more rumors? Will you have to "moderate" your own post by the end of tomorrow?

Hah! That would be *IF* I signed their NDA, which I did not, so BRING ON THE RUMOURS BABY! YEAH!!!

[rlobrecht]

The way I look at this, is just that HP wanted an easy way to bundle a MP3 player with their consumer PCs. Dell has their jukeboxes, so HP had to have something. I hope that they are 4th generation devices.

[dean_shan]

The way I look at this, is just that HP wanted an easy way to bundle a MP3 player with their consumer PCs. Dell has their jukeboxes, so HP had to have something. I hope that they are 4th generation devices.

Yes I can see it now. "Would you like to add a rebranded MP3 player to your order?" "Oh yes thank you, having that HP logo will make my music sound better, yes I'll take one."

[Crocuta]

Another brilliant move by the new HP! :sleeping:

[Todd_B]

I hope that they are 4th generation devices.

A little birdy told me, they are 4th generation and only available in HP Blue.

[Jason Dunn]

A little birdy told me, they are 4th generation and only available in HP Blue.

HP Blue? If that's the case, then that's at least mildly different...though not really worth the announcement. ;-)

[Chris Gohlke]

Hasn't half the appeal of the iPod been the Apple branding? It is viewed as hip and trendy. The iPod may be a great device, but having the same device with an HP logo seems stupid from Apples perspective because it dilutes the value of the brand. You would not see Abercrombie and Fitch taking their line and rebranding it with a walmart tag for walmart to sell. Might be OK for walmart, but would hurt the brand of A and F. Same idea here.

[klinux]

There are indeed secret features in the iPod as detailed at the iPodLounge (http://www.ipodlounge.com/articles_more.php?id=4603_0_8_0_M).

Nevertheless, there is no way HP will come out with these secret ones first!

[Felix Torres]

Three possibilities come to mind to explain HP's decision:

1- They think the iPod is the end-all and be-all of digital music and the laws of nature make it impossible to build a competitive product that will sell enough to justify the cost.

2- They think digital music players are a small market that will *remain* small indefinitely and hence not worth spending money on. Given that HP products sell in two main channels--direct corporate sales, where a music player is a non-issue, and through retailers that already carry multiple brands--they may think an HP design would get lost, much the way their previous offerings (the PA-1, EN-5000, etc) were.

3- They expect a *flood* of competitive players that will commoditize WMA playback and drive the price of players and attendant profit margins down to levels where they would add little if anything to the corporate bottom line. Given that their recent line of PDAs seem designed *solely* to improve the line's profit margin, this is the most likely scenario, I think.

Right now, there are essentially three general digital player markets;
- Apple's walled garden built around coolness and AAC/Fairplay.
- Generic no-name MP3-only players built around rock-bottom pricing
- Mid-range mp3/wma-based players with Janus-DRM compatibility.
World-wide, Apple commands a 29% share; the top 6 mid-range vendors (iRiver, Creative, Rio, Philips, RCA, Samsung) each range from 5-17% for a total of about 55 percent.
That adds up so close to 100% of the market that the only way to build sales *beyond the natural growth of the market* is to take share away from the existing vendors by going after price-sensitive buyers which is hardly compatible with high profit margins.

Contrast HP's approach with that of their arch-enemy Dell; Dell sells direct to consumers so a Dell-branded player drives traffic to the online store and establishes a relationship with the customer that might lead to computer sales later. Dell got into the market a year ago, so they are not entering fresh. And, while Dell's player is made by Creative, it is not merely a rebranded Nomad, but a distinct design. Which is to say, Dell sees *some* value in fighting for a slice of the market to field a product of their own, much as they do with PDAs and printers, and they are not afraid of competing in a potentially commoditized market.

HP, by choosing to sell a recolored Pod, chose to become an Apple sales channel rather than an independent player in the digital music player market. They see more profit within the umbrella of Apple's walled garden, even after paying Apple their pound of flesh, than in competing in the open market with a product of their own. (Has anybody heard *how* HP intends to sell the blue pod? Will Best Buy be selling HP pods beside Apple's?)

HP's recent PDA intros call into question their commitment to the iPaq line and now with their side-stepping competition in the music player business, and the non-appearance of the announced HP flat-panel TVs (are they shipping anywhere? Did I miss an announcement?) they may be reconsidering their presence in Consumer Electronics markets altogether.

As well they should.
CE markets are dog-eat-dog and China, Inc shows no sign of slowing its output of commodity electronics. Prices and profit margins will only go one way: down and fast.

A recent intro I ran into suggests the mid-range is going to be squeezed big-time: a Polaroid-branded 30Gb jukebox at PC Mall of generic size and features, brand-new, for $179. Noticeable amoung the listed specs: WMP direct-connect and Real-time Clock. This means Janus. Which means subscription-capable.

Add in the new entries from Creative, Rio, Samsung, Philips, GoVideo, and even a return of the Commodore(!) name and it seems like there is a flood of product coming. I see a bubble forming...

HP may not be brain-dead; they may simply have no stomach for a music player price war...

[Felix Torres]

There are indeed secret features in the iPod as detailed at the iPodLounge (http://www.ipodlounge.com/articles_more.php?id=4603_0_8_0_M).

Nevertheless, there is no way HP will come out with these secret ones first!

Interesting dissection of the untapped power of the chips in the Pods.
Seems to me they all point in the same direction: docking stations.
Stick the pod in a docking station to connect to a stereo or a TV for photo display...

Fits in nicely with the Jobs business model.

[Suhit Gupta]

Is there any word on software support? i.e. is HP going to have a different music store? And is the HP iPod going to support something other than AAC? I mean, if that were the case then that could be a big boost to sales.

Suhit