HP has decided to stop reselling Apple's iPod in the US.

Apple said that “HP has decided that reselling iPods does not fit within the company’s current digital entertainment strategy.” The selling of ‘Apple iPods from HP’ will cease in September.

However, HP spokesman Ross Camp confirmed that HP will continue to install iTunes on its PCs.

HP and Apple announced the distribution partnership at the 2004 Consumer Electronics Show. Since then, HP has accounted for about 5 per cent of iPod sales.

HP is now left without a digital music player strategy. As part of its agreement to sever ties with Apple, HP must refrain from selling a competing music player for a year, according to the Wall Street Journal.

Camp declined to comment on that report, but reiterated that HP is committed to selling digital entertainment products to consumers.

With the arrival of new HP CEO Mark Hurd in March, the company has taken a critical look at many of the business relationships and strategies established by former CEO Carly Fiorina.