Apple Flattening iPod License Fee

[whee900]

The flat $4.00 fee only benefits manufacturers of accessoriest costing $266.00 or more. That is because 1.5% of $266 is $4.00.

So everyone making those $50 or less handy accessories will be paying noticably more. This is the lion's share of the market most likely, so in the end, it means more revenue for Apple and higher prices for most accessories.

That's incorrect; before, the licensing fee was 10%, not 1.5%.

Cheap accesories will be completely cut out of the market, as those manufacturers won't be able to pay the fees while still making a profit. But even for high-end products, the price probably won't change much from the perspective of the consumer. Expensive products, like those from Altec Lansing and Bose, won't lower in price becuase the companies will just suck up the extra profit, and keep prices at the same level. So i.e.: we won't see too much of a change in any prices.

 

[ccool2ax]

Well there goes my idea for a line out iPod I/O device now that I have to pay 4 bucks a unit just to get to the line in/out ports.

 

[Lollypop]

Im hoping to see a new wave of high end accesories, if the low end people suffer Im sure apple wont mind taking over from them

 

[rickag]

Am I right in thinking these royalties aren't mandatory?

Quote from the Smarthouse article.http://www.smarthouse.com.au/iPods_...nd Portable Players/iPod Accessories/B8G3H6R6

A leading iPod accessory manufacturer who is not part of the Made for Apple program but is still selling bucket loads of iPod accessories around the world said. "My legal advice is that one does not need to pay a licence fee to Apple for a 17pin connection device that connects into an Apple iPod. All one is paying for is the official endorsement of Apple's "Made for Apple" program and 10% was a bit rich. $4.00 is acceptable if one is selling a product over $100 however it will not work for the low cost sub $100 accessory manufacturers".

 

[fixyourthinking]

Prolly not the case

Actually is more likely to go up in price by a greater amount. As the four dollars will be on the wholesale rather than the retail.

Using fake figures under the old system lets say Griffin sold its unit at $15.00, the money the got was $13.60 (roughly) now with the $4.00 charge, this will cost retailers $17.60.
Once again using made up figures if the retailer double up from wholesale (unlikely in electronics, but I don't know operating margins) to retail it would have been $30.00, but now is more likely to be $35.00

However, things like the Bose Sound Docks and Altec Lansing thingies, will obviously go DOWN in price!

EDIT: "Go DOWN" - in theory, that is.

Companies like DLO and Griffin that make inexpensive dock devices most likely will get a special arrangement. This would be an increase for them, a significant one!

Bose, Altec Lansing sell by the 1000's and 10's of 1000's ... while Grffin and DLO sell by the 100 thousnds and millions.