HP to license iPod from Apple

Hewlett Packard is to license iPod technology from Apple to create its own device. Reports Reuters:

Beginning this spring, HP said it will start selling the HP-branded player, as well as make available Apple's popular and easy-to-use iTunes digital music jukebox and online music store to HP customers... HP said that, as part of the agreement with Apple, its consumer personal computers and notebook PCs will come preinstalled with iTunes and a desktop icon to point users directly to the iTunes Music Store.

Update

: In another twist, Apple now says it is going to manufacture the HP-branded devices, and sell them to HP, who will in turn sell them on to consumers. Apple shares are up close 5% on the news.