Friday, January 09, 2004

Unholy alliance...

Reports are pouring in from all across the net of a new - and intriguing - business deal between two very unlikely partners: HP and Apple.

The two tech giants have forged an unusual alliance. Apple is going to develop an HP-branded iPod while HP is going to bundle iTunes on all new HP and Compaq computers (HP owns Compaq).

According to Phil Schiller, the HP device won't carry the iPod name, but will have the same form factor and features as third generation iPods and come in a color titled "HP Blue." The iPod's start-up screen will still feature the Apple logo, though.

Obviously, Apple feels secure with the current iPod's power in order to start branding it out to other companies. Of course, having iTunes bundled on new computers is also a great achievement for Apple, exposing even more people to the iTunes Music Store and the overall Mac interface.

Remember, Apple's long term isn't to make its money selling music or even selling iPods. The iTunes/iPod for Windows strategy is designed to eventually get people to consider buying a Mac (which is where Apple's big profits come from).

It's kind of like a deal with the Devil (of course, we're not sure which one will wind up being the devil).

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