New HP CEO Mark Hurd dumped the Apple iPod deal because it didn't help his company lead the market, he told Business Week.
Asked about the decision, he said: "There are a lot of bets we can make, but we want to make those bets in markets that are exciting, have growth, are worth dominating - make that "leading," the lawyers don't like "dominating" - and in which, by the way, we can lead.
"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."
Hurd also characterized his decision to make changes in HP's organizational and management structure as one which made individual managers "more accountable" and made the company's business segments more flexible.
He observed that the previous "matrix"-like structure also offered managers an excuse, setting the stage for a blame culture.
Third parties spoken to as part of the report anecdotally confirm the company to have a "renewed energy".
"My view is that HP has an impressive set of assets we can bring to bear over the next few years," said Hurd.