HP is to update its line of iPods – for the first time since it began rebranding them last August.
VP consumer brand and marketing Siobhan O'Connor told Cnet: "Expect us to have, like we did with the original products, a very similar line-up to what Apple has."
HP currently sells only two models of the iPod, the 20GB and 40GB models, and those are hard to come by, according to Forbes.
Goldman Sachs analyst David Bailey has already criticized HP for not keeping up to date with Apple's latest innovations to the iPod line, and for only focusing on the white iPods, rather than the iPod mini and iPod shuffle.
He said: "HP's iPod sales are likely to decline markedly over the next few quarters unless HP is able to bring out new iPod models in a more timely manner."
He expects that HP's share of total iPod shipments could drop from 7 per cent in the December quarter to just 2 per cent to 3 per cent for the quarter that ends this week, writes Cnet.
O'Connor said that HP is "really pleased with the market share percentages" attained since launching the product, and added that "there was incredible demand for the iPods during the holiday season".HP sold about 321,000 iPods in the fourth quarter, while Apple sold 4.58 million. Apple doesn't seem to need HP to move more iPods and it's unclear what the advantages are for HP, notes Forbes.
Morgan Stanley analyst Rebecca Runkle recently found that only 3 per cent of iPod owners who were in the market for a PC planned to purchase a PC from HP, suggesting that " HP is most at risk for Apple [market] share gains."