HP iPod in the works...

I was shocked to hear that the new G5 Xserves were certified to run other server software besides OS X Server, and today I was even more surprised to learn that Mac is teaming up with HP to make an HP branded iPod. Check it:

HP to make iPod-based players
Apple's desire to see the iPod remain the leader in the digital music player market got a big push on Thursday when Apple and HP announced that they have formed a strategic alliance to put HP-branded digital music players based on the iPod. The news came at the Consumer Electronics Show (CES) in Las Vegas, Nevada. [MacCentral]

Now, the Server thing makes sense, but it seems like this H-pod move will undercut regular iPod for Windoze sales, no?