“Apple Computer is stepping up its push to get iPod accessory makers to pay for the right to connect to the popular music player,” Ina Fried reports for CNET News. “For some months, the company has been seeking royalties from accessory makers that want to display a ‘Made for iPod’ logo on their products. The program, which one analyst has likened to an ‘iPod tax,’ applies to devices that connect electrically to the player and not to cosmetic things like cases.”
Fried reports, “Now Apple has made the program a requirement for manufacturers who want their gadgets to plug into the ‘dock connector’ at the bottom of the music player, Senior Vice President Phil Schiller confirmed to CNET News.com last week. ‘Yes, the electrical connection has specifications around that and licensing around that, and the way you get that assistance and information and licensing is through the ‘Made for iPod’ program,’ Schiller said in an interview. He did not say when Apple made the program mandatory.”
“According to a source familiar with the program, Apple is getting a royalty on the order of 10 percent of a device’s wholesale price… ‘They’re just expanding the ‘iPod tax’,’ said Gene Munster, a financial analyst at Piper Jaffray. ‘Ultimately Apple is tired of watching these people profit off their success.’ Though some device manufacturers may quibble with the royalty Apple has set, there will be some peace of mind for them in knowing that the accessories they make today will work with the iPod of tomorrow,” Fried reports. “As part of the current “Made for iPod” program, Apple will ensure that devices will physically accommodate future models of the player, Schiller said. Accessory makers can build a standard well for an iPod and know that future iPods will fit into the slot. Apple has also pledged to include an adapter with its players that will let them fit into any products built around that universal well. (Apple included such an adapter with the recently introduced iPod Nano.)”
Full article here.
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The only reason this is even a story anywhere is because it involves the names “Apple” and “iPod.”
Report: Apple set to charge iPod accessory manufacturers 10% iPod port license fee – October 11, 2005