Hewlett-Packard Gets Out of Apple's iPod Pie

Updated from 3:31 p.m. EDT

Apple Computer(AAPL Quote) said Hewlett-Packard(HPQ Quote) is suspending a deal with Apple to license and sell iPods.

Apple spokesperson Natalie Kerris confirmed a report on The Wall Street Journal's Web site Friday that H-P, which has accounted on average for about 5% of overall iPod sales, would stop reselling the popular digital music player. H-P notified its retail distribution partners that it would phase out iPods, the Journal said.

"H-P has decided that reselling iPods does not fit within the company's current digital entertainment strategy," said Kerris. "As a result, H-P plans to stop reselling iPods by the end of this September." ...