ipod
10/11/2005, 7:45am, EDT
Tuesday, October 11th
Apple's iPod licensing fee may backfire
Apple's Made for iPod licensing program may drive away some big-name manufacturers from producing iPod accessories. As noted earlier this year, Apple has notified companies that it will collect a 10 percent royalty fee for products that access the iPod port and may drive manufacturers such as Bose and Altec away from the iPod accessory market, as many believe the fee is much higher than comparable license fees, which are about 1-2 percent, according to Smarthouse: "The move will significantly impact iPod accessory manufacturers with some considering dropping accessories from their portfolio.... Dominique Water the head of Bose's Asia Pacific operations said "All Apple partners were told of the decision some weeks ago. This is a massive licence fee which will not sit comfortable with many partners. Bose is not happy as the proposed fee is excessive by any standards." The report also notes that Bose is calling for a single standard to connect accessories to any (Windows-based) MP3 portable player.
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And to add fuel to the fire. Not only is there a stiff fee but Microsoft can even dictate what 3rd party product the company can release.
So if Microsoft thinks there are too many 3rd party memory cards on the market they can tell a company no we are not going to license any more cards.
If Microsoft and Apple are successful look for every company to start doing this.
One of the major reasons that the Macintosh has managed to survive has been the great Macintosh COMMUNITY. For instance, when Mac people see you using your PowerBook in public, there's a silent recognition. It feels good. In a society where one can feel increasingly isolated, it feels good.
When people get a taste of the Mac community spirit, they generally like it. it seems to run counter to consumer driven society.
One of the reasons that the iPod took off and dominated is that it's an extension of the Mac community. The price of admission is a lot lower, too.
Big corporations are hated more and more as they take over and homogenize every facet of public and increasingly, private life. This iPod tax smacks of the same dominating, faceless greed. With new-found success, is Apple becoming just like the others? Or has the mask finally fallen away?
Apple, say it ain't so! It CAN backfire.
Not saying whether this would be right or wrong, but it's certainly a far cry from 10% of the retail price!
Maybe Apple knows this is excessive, and they want to weed out some of the vendors so they can move in with more Apple branded accessories. I mean, its sort of weird that there are no Apple-branded speakers for the iPod.
I am getting the feeling that the old Apple attitude is creeping back. Just recently, I called AppleCare and was transferred to some illiterate in India who couldn't understand me. I had to repeat my telephone number over 10 times before I hung up. Another stupid maneuver: outsourcing customer service.
Then, I had to wait over 45 minutes to drop off a computer for repair. Apparently, the Apple Stores require you to see a "genius" when you already have a case number from a phone-tech call. Again, stupid.
The bottom line is that Apple is on a roll. They are trying to make the best of the "halo effect" of the iPod. And, frankly, I am getting the feeling that they are getting in over their heads and the quality that I am used to is slowly slipping away. Just my thoughts.
iPod accessories are already expense enough the way it is. Adding another 10% would hurt sales, I think. And manufactures might just decide to make one version of their stuff for all MP3 players by using the headphone jack instead. Bad for consumers (less elegant) and bad for Apple (less iPod "lock-in"). Tempting for manufacturers because they don't have to create two different versions of their accessories.