- Apr 12, 2001
According to Australian magazine Smarthouse, Apple has changed its iPod royalty model to a flat USD $4.00 price per unit sold to interface with Apple's dock connector.
Originally, Apple charged 1.5% of the wholesale price but when the iPod took off and Apple began making their own accessories, third party manufacturers saw the royalty escalate to 10%.
Apple has refused to comment on the fee. The move is set to favor the manufacturers of high end iPod accessories such as Bose, Jamo, Altec Lansing and Hi Fi manufacturers who are selling iPod connector or docking stations. It's also set to please who late last year were angry with Apple over the move to increase license fees.
The move is expected to not only help third party manufacturers, but also simplify Apple's management of the program.