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
Written by: James Delahunty @ 31 Jul 2005 8:46