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Report: Apple set to charge iPod accessory manufacturers 10% iPod port license fee

“Apple is set to slug partners a massive 10% licence fee for access to an iPod port. The move will significantly impact iPod accessory manufacturers with some considering dropping accessories from their portfolio,” David Richards reports for Smart House. “Among the companies set to be hit is Bose who make the highly successful Bose iPod docking station music system. 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.'”

Richards reports, “Another Bose executive said ‘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 accessory manufacturers are designing for the iPod Apple platform.'”

Full article here.
Note to Bose and all other makers of accessories utilizing Apple’s iPod port: Apple holds around 80% of the digital music player market. Bose and other designers are not designing iPod accessories because Apple has a common port, they are designing them because iPod massively dominates the market. Dose of reality: you’ll pay the 10% and you’ll do so with a smile. If not, have fun trying to make and sell accessories for also-ran players that are killing each other over Apple’s scraps.

Related articles:
Over 1,000 accessories now available for Apple iPod – September 07, 2005

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