http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/ Engadget Comments for http://www.engadget.com/media/feedlogo.gif http://www.engadget.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
But Microsoft creating a standard? They don't even adhere to them! Typical crap coming out of Bose, just like their products! They price their speakers the same as Paradigm, Monitor, etc. and people buy them because it's the nicest thing they can find at their big box stores without going to a stereo shop.]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
If I made Apple accessories, I'd be pretty freakin' pissed.

-- Elias]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
HA!!!!!!!!!!!!! Like they'd do anything differently. Guess this guy missed the memo that MS is doing something similar for 360 periph's

The increase sucks for the 3rd party app makers and us because that means accessory prices are going to go up 10%

Steve's being a tad greedy here, but when you're the King you make the rules]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
Don't labels still pay royalties to Philips for the CD?]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
I have worked in retail and have seen what RETAIL COST is on a lot of these products.. the markups are INSANE.

You know those adapters and gender changers you buy at places like Best Buy, Radio Shack, etc? They cost, on average, $6. I know for a fact that Best Buy's cost on items like this is anywhere from ~$0.60-2.00. Then figure that they made the stuff in some Asian country for a fraction of what the retailer pays, and you'll see how everyone involved is making a KILLING.

That's also why you can, very often, find a lot of these same items on ebay for a fraction of the price. Asian mfr's have gotten wise and wholesale the stuff direct, making just as much (if not more) money, and cutting out the middle man.

When you think about that, you'll see why 10% doesn't sound that ridiculious. Oh.. one more thing...

That 10% is only for accessories with the "Made for iPod" logo. Manufacturers can still make the accessories, they just won't get preferential treatment in some sales and distribution channels thanks to Apple's influence.

If anything, you'll see more third parties sell online only if they get cut out of the retail loop. Not a big deal, IMHO. Some of the best iPod accessories can only be found online anyways.]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
2nd: this doesn't include cases or sync/charging cables

3rd: the REASON for the fee is to join a liscensing and development consortium.

More on #3: All sorts of manufacturers are reverse engineering Apple's proprietary interface and releasing products that are substandard. Yes ... it's great to have choices ... but I don't want my customers to even have the choice of buying crap.

Example : an accessory that doesn't adhere to requirements/standards/circuit architecture - blows the port - then where are you? Do you blame Apple?

The manufacturers that have trusted brands and tested devices like Griffin are already making 20 - 30% more because they have become cheaper to make. Larger manufacturers will make better deals with Apple directly.
]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
The Bose exec makes a good point. Microsoft should make a standard for mp3 player connections and make it part of their 'PlaysForSure' program. For the handful of people who don't buy iPods, and want to use services like Yahoo Music or Napster To Go to download unlimited songs, the 'PlaysForSure' logo would let them know that they can use the device with that service, and if Microsoft releases a spec for a standard MP3 player connection, let them know they can use standardized accessories with the player.]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
Ipod need to step up on this because right now it is simply a trendy and stylish device, and we all know trends and styles tend to come and go.]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/"What we need is for the MP3 vendors running the Microsoft operating system to get together and deliver a common port accross all MP3 devices. We also need a common docking design so that people like Bose can develop common accesories. Currently Apple is the only one with a common port as a result accesory manufacturers are designing for the iPod Apple platform".

From that he sounds like he wants all MSFT compatible players to have common ports. MSFT could push manufacturers to install the port by demanding it in conjunction with their PlaysForSure licensing....]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
Less than a month later they want a 10% cut of all accessories because without the ipod there are no accessories. Now they are just protecting their R&D as opposed to RIAA protecting their artist investment. Funny how things work out.]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
Didn't you know? Steve Jobs and Apples sh!t don't stink. It's Apple, fanboys always hold them to a different standard.]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
Like I said, it’s nothing against the iPod itself. It’s great hardware.
]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
/gently strokes his AV700]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/End result increased prices to consumers. One day Apple will NOT control the music device business as comprehensively as they do today. And the start of such a decline is usually shown by excessive greed. Which IMHO we are seeing today.]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://arstechnica.com/news.ars/post/20050920-5328.html]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
Not everyone who buys music owns an ipod, why would you levy those people after they've already bought the music? It's setting up for a Boston Tea Party.]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
Actually, these are two different stories. The earlier story was about licensing the "Made for iPod" seal of approval, this one is about an increase in the fee for use of the iPod connector port.

Peter]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
As far as them being crappy, that is a choice the consumer makes...nobody is stupid enough to believe these cheap items are great quality...i buy cheap accessories yet i KNOW what im getting.]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
--

you're a dumbass..

with this move, they can drop the price to at-cost levels and still make money off the ipod accessory revenue (not to mention itms content)

the customer buys more, accessory makers sell more, and apple takes their 10%

over time, that 10% may end up being their only iPod related money... and will be just fine..

of course.. that assumes they will have some semblance of competition.. they pretty much have a monopoly..]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
"We didn't think it up or take the risks of manufacturing it, but you wouldn't be around without our Intellectual Property.. so PAY UP!!!!"
]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
Oh yeah? Not when they raise the price of their products ten percent to recoupe their losses buck-o. You're living in a fantasy world if you think this price hike isn't going to be passed right along to you and me. 30 bucks for a silicon case is already ri-godamn-diculace, not to mention the cost of so called port accessories which is what would be supposedly targeted here.]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/because without overpriced iPods (and yes i already ordered my new 30 gig video capable one, an yes, i got a nano a month ago as well) and the overpriced accesories (lets not get into that, but seriously, why did the lanyard headphones take so long to ship >=O) apple wouldnt be around much longer]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
As for the MSFT idea, it'll never work. A standard connector would either have to be flexible enough to accomodate a variety of different designs, which would be much less useful for mfrs and consumers, or it would have to be very strict which probably wouldn't appeal to mfrs because they would be limited in what they could make and have a tough time breaking away from the pack.

Every monopoly has an end. Apple will fall sometime.]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/I don't know if that 10% is a big deal or not

It's a big deal. Would you like to give up 10% of you before tax paycheck?

So you take retail MSRP, The breakdown:
retailer - 30-40% of that
manufacturer - 30-40% margin
Cost of goods (including shipping, etc.) - 20%-40%

So you do the math. The point is that while it may seem like the retailer and manufacturer are making a killing if you are not aware of the reality, the profit is gross profit. You have to subtract out all of the fixed costs such as sales staff, engineers, marketing, customer service, and brick and morter for the retailers. You can make a killing, but it's not as easy as some would have you believe.

Apple already charges $15 if you want to buy the other end of their dock connector. Another 10% of MSRP and that makes it really hard to deliver high accessories for low prices. I think Apple just wants everyone else's accessories to be as expensive as thiers.

For thoose defending Apple, the 10% cost will be passed on to the consumer. And there will still be crap accessories because this isn't going to stop the likes of Luxpro.
]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
The iPod accessory market is their last refuge of margin on all Apple related products,

They generally sell these iPod accessories at 20 to 40 per cent above cost - which means the $40 case is worth more to the store than the iPod inside it.

This 10% hit would be difficult for them to manage either as a direct cut to their margin (unlikely), or (more likely) as an added cost to consumers, as manufacturers costs rise. Either way resellers suffer due to less profit per unit, or less units sold due to increased consumer cost, with unstable (but currently bullish) consumer confidence.


Of course this is assuming a lot, I only read the engadget blurb, which seems to sway towards sensationalism.]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
Although I do agree about your comment on "upselling", but you can't just look at how much they bought it for. You have to look at *ALL* the costs. Employees, accounting, shipping, advertising, stocking etc... etc... etc...]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
This article isn't about the "Made for iPod" program? The program is for devices that "connects electrically to the iPod". Altec and Bose are both members of the program, so why would they be complaining now about a fee that they've been paying for 7 months?

TjC, idobi]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
What's the difference between what Apple is doing to iPod add-on manufacturers and what the RIAA wants to do to Apple (the RIAA wants a cut of iPod sales).

I don't care if it is an industry practice, it's WRONG, WRONG, WRONG!]]>Dec 19th 2005 2:31AMhttp://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/http://www.engadget.com/2005/10/13/apple-wants-10-of-ipod-accessory-revenue/
And let's not even get into the blatant editorializing through sensational adjectives. However, if this is true, Apple has some 'splaining to do. But among reasoning I would accept is an attempt to ensure quality accessories.

Honestly, until I see some other confirmation, this sounds like Bose and Altec trying to curry some PR favor at Apple's expense. And it sounds like a writer with a chip on his shoulder, especially with this far-fetched hypothesis about the Microsoft OS mp3 makers getting together.]]>Dec 19th 2005 2:31AM