Apple, not known to be a big player as either a licensor or in the Windows software world, has swung a pretty big deal with HP. HP's digital music efforts will essentially be built around a re-branded iPod player and the iTunes for Windows jukebox and Music Store.
Every consumer HP or Compaq desktop, laptop, and Media Center will ship with iTunes preinstalled. Since HP's the #2 PC manufacturer worldwide, this gives Apple massive distribution for their service. It also stands to drive iPod/hPod sales through the roof.
"The way we look at it, HP will be reselling an iPod device," said (Apple SVP Phil) 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.Since QuickTime is needed to support iTMS's MPEG-4 and AAC-based file format, it also broadens the footprint for Apple's core media technology. Given Microsoft's unique ability to push Windows Media with their OS, Apple's deal with HP is also a blow to Real Networks.In addition, HP will start pre-installing Apple's iTunes on its consumer PCs and desktops. HP previously had said it planned to enter the digital music player and music store business, though sources familiar with the company's plans said partners would likely be involved.
