September 3, 2005, HP Explains Why It Dropped the iPod

Hewlett Packard had started reselling the Apple iPod when iPod mania was raging. It seemed like a good plan; HP had connections with mega retailers Wal-Mart and Costco, among others. The idea was that with the iPod available in a myriad of new markets, the deal would be a win-win for both companies.

But HP iPod sales never amounted to much in terms of total iPods sold, and when Carly Fionira was ousted and Mark Hurd took the CEO position one of the early and most public changes he made was to abandon the HP iPod reselling program.

New CEO Mark Hurd explained the change by saying:

"So think about putting our logo on the iPod. Is the market worth leading? Maybe it is, But can we lead it, with no or very little technology differentiation? Doubtful. You have to go into places where you can lead."

The explanation appeared in Business Week this week in 2005.