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Apple seeks royalties, for "Made for iPod" campaign

malebolgia   on 07 March 2005 - 15:32 · 42 comments & 4700 views

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Industry insiders say the world-wide MP3 accessory market is destine to become a half billion dollar business by the close of the 2005 calendar year. Apple, whose iPod digital music player dominates the MP3 player market, is looking to reap some of the benefits of this capitalization through an iPod marketing campaign it will roll-out sometime in the next two months.

The campaign, which Apple announced last January, introduced a "Made for iPod" certification (or badge) that iPod accessory manufactures can display to differentiate their Apple-authorized accessories from those that have not been approved by the iPod maker. In recent months, the iPod accessory market has been met with a proliferation of low-quality iPod accessories that, in some cases, have proven to be hazardous to Apple's iPod hardware, even when used as instructed.

News source: AppleInsider


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(7 replies) #1 MR_Candyman on 07 Mar 2005 - 15:43
yet the approved itrip and itrip mini have many problems.

Mine doesn't remember what station it was set to when I unplug it and plug in my headphones, then plug the itrip back in. Then It won't actually program itself properly for about an hour afterwards. Unfortunately I didn't notice this sooner as I usually just haver the itrip in the mini, as I hardly ever use the headphones
#1.1 dp123 on 07 Mar 2005 - 17:06
QUOTE
yet the approved itrip and itrip mini


Approved? The program hasn't begun yet.
#1.2 twyst3d on 07 Mar 2005 - 19:20
apple sells it on theyre site with the ipods so in a way its "approved"
#1.3 dp123 on 07 Mar 2005 - 21:24
No, it might be "approved" in YOUR MIND, but this does not mean it is Apple approved.
#1.4 cooldude7273 on 08 Mar 2005 - 00:49
Well, why would they sell something they didn't approve of?
#1.5 dp123 on 08 Mar 2005 - 01:08
QUOTE
Well, why would they sell something they didn't approve of?


So, now, Walmart "APPROVES" everything it sells, Amazon approves everything it sells, etc...

The question is: if you can sell something, why wouldn't you? (...unless you disapprove it of course.)

But moreover, Apple provides download links or links to the web site for almost every single application available for Mac OS X... Does Apple approve of every single application ever created for the platform? I doubt it.

#1.6 priestx on 08 Mar 2005 - 05:22
Apple markets it's accessories. It is approved by Apple. It is even sold on Apple Store. Griffin manufactuers, and Apple distributes under their store. Amazon wal-mart, etc are just 2nd party.
#1.7 dp123 on 08 Mar 2005 - 17:22
QUOTE
Amazon wal-mart, etc are just 2nd party.


How are they different?

QUOTE
Apple markets it's accessories.


First, it's not Apple's accessory. You mean Griffin? So? Amazon markets the iPod.

QUOTE
It is approved by Apple.


Not in the way a badging system does. They approve it only insofar as they sell it.

QUOTE
It is even sold on Apple Store.


No kidding, how is this approval. Amazon markets and sells iPods: does Amazon approve the iPod?

Apple is a second part here as well.

QUOTE

Griffin manufactuers, and Apple distributes under their store.


And they also distribute simialr products by Belkin and Monster. So?
(3 replies) #2 ClintEastman on 07 Mar 2005 - 15:45
QUOTE
Apple is rumored to be seeking an approximate 10% royalty kick-back on all products that will display the badge. For example, an authorized iPod accessory which retails for $50 would add $5 to Apple's bottom line, the proceeds of which will likely be used to offset the costs of its massive iPod advertising campaign.


10% is a very high number, seems like there trying to kill off a chunk of the market!
#2.1 theyarecomingforyou on 07 Mar 2005 - 18:39
They want to get rid of all the poor quality accessories, as well as making a shedload from the rest.
#2.2 CubanPete on 07 Mar 2005 - 21:02
funny how it doesnt really mention anything about apple testing the products, i think they just want a share of the profits
#2.3 dp123 on 07 Mar 2005 - 21:53
Funny how this is a RUMOR about pricing not implementation. Funny... if it ain't mentioned, it must not be at all, only logical conclusion. Funny... no, not funny.

What is clear: Apple will approve some resellers and others will not be approved. What wil be the difference: Apple makes the decision based on some reason -- whether that be style, quality, flawlessness... who knows.
#3 kirk26 on 07 Mar 2005 - 15:45
The beginning of the end of the reign....
(2 replies) #4 Chicane-UK on 07 Mar 2005 - 15:55
Because of course Apple hasn't made enough already on the iPod! Not!

Fatal mistake IMHO.. way too much of a Microsoft type tactic that will lose them some of their support behind people who consider them a fair company!
#4.1 Nose Nuggets on 07 Mar 2005 - 22:05
a microsoft tactic?
not to be confused with a "buisness practice"
forgive me if im wrong but.... i think apple is in the buisness of making money


but i could be wrong
#4.2 Chicane-UK on 07 Mar 2005 - 22:40
Really? Damn.. yeah.. now I see where I went wrong. I was under the impression Apple were a charity but thanks for helping to point out my mistake.

The point I was trying to make is that a lot of people like Apple because they just come across as a 'nice' company - little maneuvers like this help tarnish that image a little. I couldn't give two $hits personally.. i'll still buy their stuff!
#5 NinjaMonkey82 on 07 Mar 2005 - 16:11
I'm not sure what to think of this. It is good that Apple is giving there approval on iPod addons, there are a lot of bad ones out there. The 10% Apple wants could benefit the accessory makers if Apple uses the money on iPod ads. The more iPods sold the more people buying add ons.

Though 10% seems a bit high.
(3 replies) #6 Jason on 07 Mar 2005 - 16:17
The start of the end and this is all Apple had going for them.
#6.1 dp123 on 07 Mar 2005 - 17:08
All they have?

Did you forget the iPod, iPod mini, iPod shuffle sales, the evermounting success of the iTMS, the fact that Apple is selling more hardware and software, the fact that their retail operations are profitable and growing... What makes you think this is"all they have going for them"?
#6.2 Jason on 07 Mar 2005 - 17:13
I was refering to the ipod and its million updates.
#6.3 dp123 on 07 Mar 2005 - 17:36
Okay... So... you are even more delusional than I thought...
#7 ClintEastman on 07 Mar 2005 - 16:19
Im guessing Griffin and Belkin arn't paying 10%, call it a hunch.
(1 reply) #8 Jack31081 on 07 Mar 2005 - 16:28
perhaps you guys are overreacting a bit? It's not like accessory makers need to use this badge in order to sell iPod-compatible products. It's a voluntary campaign. If a company thinks that the "made for iPod" badge will increase their sales, then they can use it, with a 10% royalty fee going to Apple.

Don't worry, all the products out will continue to be sold, and I figure most won't opt for this badge. Everyone already knows that products like the griffin iTrip and belkin's cables and such are made just for iPod. No need for a badge to tell people that. This is more for lesser known accessory-makers that want to bust into the market, with Apple's help.

Some people will look for anything to predict Apple's demise...
#8.1 betasp on 07 Mar 2005 - 16:39
QUOTE
perhaps you guys are overreacting a bit? It's not like accessory makers need to use this badge in order to sell iPod-compatible products. It's a voluntary campaign. If a company thinks that the "made for iPod" badge will increase their sales, then they can use it, with a 10% royalty fee going to Apple.


You are correct, this is strickly voluntary. Unlike the Intel inside badge that is required for all advertising of products that use intel products.
#9 aristotle-dude on 07 Mar 2005 - 16:44
Guys, What does "rumored" mean to you? How often has Apple Insider been right? Not very often.
QUOTE
According to sources, Apple is rumored to be seeking an approximate 10% royalty kick-back on all products that will display the badge.

Does that should official or something you would read in a supermarket tabloid? I'm quite frankly sick of rumor sites alltogether. Their "sources" could be their arse or the wiskey drinking janitor at Apple.
(4 replies) #10 shao on 07 Mar 2005 - 16:50
is it me, or has anyone else noticed that practically all news about apple of late is negative in nature?
#10.1 Jstphish on 07 Mar 2005 - 17:21
It's because they are becoming more and more popular and that's what happens to the guy on top. Nobody likes the king of the hill.
#10.2 lare2 on 07 Mar 2005 - 19:32
QUOTE
the guy on top


The guy on top ?
#10.3 imtoomuch on 07 Mar 2005 - 20:00
How is this negative news? It's just an article stating what Apple is rumored to be doing.

Anyway, I think these licensing deals are beneficial to the consumer because if you buy a licensed you are assured that the accessory will work with the iPod and approved by Apple. Apple is just doing it for profit, though, and who knows if they will test the products that they give a license to.
#10.4 Korben_Dallas on 07 Mar 2005 - 22:35
I couldn't think of anything nice to say - so I won't say anything...

But, if I start my own trade industry association - and let it slip out to some blogger that I will roll-out my previously rumored "Not Made for iPod" certification (or badge); Do you think the other 'MP3' DAP manufacturers will want to buy into it? I'll go as low as 1.5%

Oh, and if it's hazardous to Apple's iPod - I won't give it a badge either.
(7 replies) #11 SlakeT on 07 Mar 2005 - 19:55
Typical corporate apple. Hey - why not kick them in the face - their users like it!
#11.1 roadwarrior on 07 Mar 2005 - 20:18
So how is the "Made for iPod" certification program any different in your eyes from the "Plays for Sure" or Windows Logo certifications?
#11.2 Jack31081 on 07 Mar 2005 - 20:41
exactly. As mentioned before, Intel does the same thing with their "Intel Inside" badges. And they're required, unlike this, which is voluntary.
#11.3 Magallanes on 07 Mar 2005 - 20:53
Windows logo certification is not related to be 100% bug free, is more related to be standarized. For example if you buy a software and want to obtain the windows logo certification then you cannot use .INI files.
#11.4 moeburn on 07 Mar 2005 - 21:06
Roadwarrior, it isn't different, its the same bullsh*t from back when trading card manufacturers put protective seals on their cards so you wouldn't be "harmed" or "disappointed" by fakes. Its just so they can hoard the market.

Oh, and by the way, bringing a completely unrelated argument is no way to back your own point, if you have one.
#11.5 jagedEdge on 07 Mar 2005 - 22:13
No, they're not trying to hold the market in their grasp at all. Apple is doing quality control here. And remember, the Made for iPod badge is optional. Griffin and Belkin will probably get it just to increase sales of their accessories.

This is going to help consumers if anything.
#11.6 Briatic on 08 Mar 2005 - 11:02
Well, I on't think so. What it will do is put pressure on accessory manufacturers to subscribe to the program regardless of quality - as not being a member will suggest that in some way your product has not been approved by Apple
#11.7 dp123 on 08 Mar 2005 - 17:23
Briatic, what you don't understand is: Apple will not allow companies who they think make substandard products into the program.
(1 reply) #12 Boz on 07 Mar 2005 - 20:56
ah good old fashioned greed. They must've said, "OMG, we can actually make even more money on iPods and stuff, so let's do this and we can up the price even more"..hahaha..just like Apple.
#12.1 dp123 on 07 Mar 2005 - 21:27
QUOTE
Belkin, one of the leading suppliers of iPod accessories, declined to say whether or not Apple was seeking royalties with the campaign, but was confident in saying the campaign would not trigger a price increase on its products.
(1 reply) #13 antsy on 07 Mar 2005 - 22:06
AAArgh, I whish They wouldent call them "MP3 Players", MP3 sucks, Even Lame isnt as good as OGG drop or MPC.

Going from CD to MP3 is like going from Film to a 2 MP Camera thinking its going to be better.
#13.1 machorro on 08 Mar 2005 - 03:10
maybe b/c mp3 was the first format and b/c all the players in the market play mp3 as default and support other formats?

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