Good, bad, other?

HP and Apple are teaming up to release an HP branded Ipod. I really don’t understand this from Apple’s perspective. You’ve got the best selling MP3 player and you create an entire storefront (which you have admitted makes you zero-very little profit) to push the Ipod (which is very profitable). Why cannibalize your own product?

Apple will manufacture the player, which will not have the iPod name but will have the same design and features as Apple’s third-generation iPod players, Phil Schiller, senior vice president at Apple, said in an interview. Also, the HP music player will come in “HP Blue,” he said.

“The way we look at it, HP will be reselling an iPod device,” said Schiller, who noted that the device will display the Apple logo at start-up and will work with all of the accessories made for the white-hued Apple varieties.

In exchange, HP is going to pre-install Itunes on all it’s Windows boxes. I’m sure there are some financial arrangements in there somewhere, but I seriously doubt that Apple’s business model is set up to be profitable as (basically) a supplier to computer companies. I must be missing something because this seems like a really dumb idea. Explain it to me, y’all.

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