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HP To Drop iPod Line

8/01/2005 09:06:00 AM Eastern

Palo Alto, Calif. — Hewlett-Packard will stop selling HP-branded Apple iPods in September, citing that the products do not fit with HP’s new digital entertainment strategy.

HP inked the deal with Apple under former CEO Carly Fiorina’s watch in January 2004 and started selling players that summer. HP sales have accounted for about 5 percent of all iPod sales. The sales agreement also has HP bundling Apple’s iTunes music software on HP computers. HP is also not allowed to sell any competing type of portable music player until August 2006.

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