News
Report: Apple changes ‘Made for iPod’ fee
In an apparent response to disgruntled iPod accessory makers, Apple has reportedly made changes to its “Made for iPod” licensing program, switching from a percentage-based fee to a flat fee structure. “The initial licensing program was based on Apple taking a percentage of revenue from all products that connected to an Apple 17-pin iPod connector,” reports Smarthouse. “Originally Apple proposed a fee of 1.5% but as the popularity of the iPod increased and sales moved into the tens of millions Apple told organizations like Bose that they had to pay up to 10% of revenue back to Apple for being an official partner of the “Made for iPod” program. Instead, the program has been replaced with a flat $4.00 per unit fee.”
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1
Uhh, who cares?
Posted by Margk on May 10, 2006 at 10:25 AM (PST)
2
I’m pretty sure the cost of the Made for iPod label directly affects the price of iPod accessories, so I’d say it’s something that should interest the consumer.
Posted by timeconsumer on May 10, 2006 at 10:44 AM (PST)
3
I sort of agree with the first guy. Just about anything passes for news these days haha
Posted by CatholicULawJew on May 10, 2006 at 10:45 AM (PST)
4
Hmm… we all should care. If it was 1.5% of the cost, and an item around $20 would have to pay Apple $0.30 for that item. Now they would have to pay $4.00 for the same item. So this means the cost of cheaper items will be more expensive, and we will be paying that fee.
This is cost effcient for manufactures of expensive items like Bose, but the ones make smaller docks, it’s going to take more of their profits, which increases our cost. Not cool…
Posted by Michael on May 10, 2006 at 10:50 AM (PST)
5
Yeah we should all care. Those that don’t think it’s important, remember this new bite when you ##### about the price of silicone cases increasing, etc.
Every sub 20 dollar item, and even those 20 dollar plus items will see a 4 dollar increase in price.
Posted by John on May 10, 2006 at 11:33 AM (PST)
6
Uh, Michael, the point was to make it *cheaper* for accessory manufacturers. There are very few people making $20 accessories who would be concerned about the Made for iPod program. The people who benefit from that stamp are the makers of dock-compatible electronic items, such as speakers, etc. Those items tend to cost above what would be required to make $4/item a better deal than they had before.
Posted by elo on May 10, 2006 at 11:35 AM (PST)
7
Yeah if you dum-dums would have read the entire article it says “all products that connected to an Apple 17-pin iPod connector”
For example: A $20 silicone case does NOT connect to a 17-pin connector.
Posted by BIG ED on May 10, 2006 at 12:17 PM (PST)
8
But a $25 battery pack does connect to the dock. So do FM transmitters and remotes. So if you buy all 3 then you’re paying Apple $12 on less than $100 of equipment. And I wonder what you’re getting for that? Does Apple do anything to make sure these are decent products?
Posted by brted on May 10, 2006 at 12:51 PM (PST)
9
yeah, if thier going to charge that much, they should at least make sure that they are decent.
Posted by paul on May 10, 2006 at 1:55 PM (PST)
10
Don’t forget that $4 in production costs translates to roughly $8-$10 on top of the final retail price after the product has been marked up when passed through all distribution channels….
Posted by Ogre on May 10, 2006 at 2:19 PM (PST)
11
Well folks, time to sprint to Wal-Mart and grab that Belkin Battery pack before this thing hits the fan…..
And if you thought iPod power accesories were expensive before, just wait till this brand of poo hits the fan…..
Posted by ArcticW on May 10, 2006 at 4:16 PM (PST)
12
You know, everyone is getting so greedy. The people who are really going to be affected are the unknowing consumers who will get doped into paying a bunch of money. Apple and everyone who already has money, just won’t ever be satisfied until the have driven us away - then they do whatever they can to get us back. Stupid companies, you will end up losing more in the end.
Posted by -=Germania=- on May 10, 2006 at 10:15 PM (PST)
13
What hasn’t been made clear is that the program isn’t voluntary - therefore, anyone who wants to sell a $10 car charger or whatever is going to have to pass the $4 charge onto the consumer. In the EU, Customs are already refusing to allow imports of any unlicensed products which use the dock connector.
Posted by nick on May 10, 2006 at 11:05 PM (PST)
14
Can I remind Mr “Who cares” that the ad that launches apple featured the smashing of “big brother” (implied IBM) by a female runner, while running away from the thought police. Who is acting like big brother now?
We should all care the governments who work for us should not turn into the enforcers of big business. Here is an old poem to remind you of the dangers of not caring:
First they came for the Jews
and I did not speak out
because I was not a Jew.
Then they came for the Communists
and I did not speak out
because I was not a Communist.
Then they came for the trade unionists
and I did not speak out
because I was not a trade unionist.
Then they came for me
and there was no one left
to speak out for me.
Pastor Martin Niemöller
Posted by David on May 11, 2006 at 4:02 AM (PST)
15
amen
Posted by mark on May 11, 2006 at 7:49 AM (PST)
16
this is pretty ridiculous. it means that if someone wanted to make a replacement usb cable which should cost about $2 it would end up costing more like $14…or more.
Posted by wah on December 31, 2009 at 5:47 PM (PST)