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hPod to outsell iPod? | Jason E. Shao

hPod to outsell iPod?

HP’s version of Apple Computer Inc.’s (AAPL.O: Quote, Profile, Research) wildly popular iPod digital music player has unofficially been dubbed the hPod, analysts said.

The two companies earlier this year struck an agreement for HP to resell the iPod under the HP name, which will boost both companies’ exposure to consumer electronics markets.

‘The expectation on the iPod is that HP’s version will probably outsell Apple’s version relatively quickly,’ Enderle said, due to HP’s broad distribution at electronics retailers. (emphasis added)

Considering the number of sales Apple has been racking up recently, and the relatively wide distribution of the iPod already, I’m not sure about that last conclusion. It doesn’t look like HP is going to be able to underprice (or really differentiate themselves at all) from Apple, and while I could see a strong market for iPod’s as an add-on at the time of computer purchase, I’m not sure how successful they’ll be “adding-on” an accessory that costs 1/2 the full price of the computer.
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