[MacDV] Re: HP to rebrand and sell iPods!

[Peter van der Linden]

> I don't know . somebody tell me what to think.

It is excellent news - a real coup for Apple.  It has just put nearly a 
dollar on the stock price (i.e. $300M on the market capitalization).  
If you didn't buy Apple stock a year ago, you needed your head 
examined.  It is still a good buy.

Not only is H-P selling rebadged iPods, but they are going to bundle 
iTunes, and put it on their Windows desktop. That is a blow to the 
second-rate Microsoft music software and format, but after the monopoly 
abuse trial MS can't be seen to retaliate against its #2 licensee.  Now 
if Apple can cut a similar deal with Dell, all the tier 2 and 3 PC 
vendors will be falling over themselves to line up for iTunes and 
iPods.

This helps move Apple in the desired direction of being the highest 
volume distributor of online music, at which point Apple can do one of 
three things: squeeze margin from the music publishers (the 
Wal-Mart/Dell model), or raise prices unmercifully (the Microsoft 
model), or cut distribution deals direct with a substantial number of 
bands (the syndication model).   No prizes for guessing which it will 
be.

Apple is a very well managed company, with excellent products, well 
integrated between hardware and software.  It is not quite as far on 
the cutting edge as it would have you believe, but in many areas its 
products are best of breed.  Even though the "Switcher" campaign 
stalled (a victim of the poor economy) Apple stands to do very from the 
economic recovery.  Additional distribution channels for its products 
are an indication of Apple's strengths.

      Peter