Slashdot Mirror
iPod Tax Causes Sour Apples
An anonymous reader writes "Apple Computer is stepping up its push to get iPod accessory makers to pay for the right to connect to the popular music player." From the article: "It's not clear what means Apple might employ if companies don't go along, as Apple declined to comment on that. Though many manufacturers have signed up for the program so far, some have complained in private that it's too high a price. But for Apple, the move is a chance to profit further from the empire it has built on the iPod, given that the market for such add-ons is estimated in the hundreds of millions of dollars per year."
If you want to say "Made for iPod", pay the money. If you don't, then say something else.
"I'd rather be a lightning rod than a seismometer." -Ken Kesey
ALCOA kept aluminum prices below market level so that the consumer benefitted. Granted this kept anybody from having the ability to enter the market but it provided the best benefit to the consumer.
...accessory manufacturers are complaining. The cell phone industry has been doing this for years. There will always be cheap knockoffs though, just take a look on EBay for that.
"Nature abhors monopolies"
Au contraire, mon frere. Over time, any given ecological niche will be dominated by one species only. You only find multiple species occupying a niche when that niche changes somehow.
"Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
I may be wrong in my history, but if memory serves me correctly-
*takes a bite out of a yellow pepper*
- Atari (or was it Colecovision? It's been so long ago I can't remember) originally had a "no license fee" to their system. Which leads to an overabundance of very crappy games, which lead to death of the system.
When Nintendo had their NES system, if you wanted the "Gold Sticker" of quality, you had to go through Nintendo's process and give them a cut for the licensing. Which forged a company that is profitable even today.
So, is Apple being "teh evil" by enforcing a trademark license - if you want to use the words "Made for iPod" on your product, you pay the fee that lets them decide if your item is actually worth it. Or, you can go the Gameshark route and *not* license your product and sell it as "iPod compatible, not licensed by Apple" and still make money anyway.
Personally, I think that Apple's being a touch overhanded here, but they're working with an existing model, one they hope to bring them enough money to continue to fund new products and new directions.
Of course, this is all just my opinion - I could be wrong.
52 Weeks, 52 Religions with John Hummel
You will know when Apple has gained monopoly marketshare when they leverage MacOS X on Intel by forcing iPod users to drop Windows. Somehow, I think Apple demanding certain manufacturing agreements with industry players doesn't quite measure up to a "portable mp3 music player" monopoly. --M
First MS releases an innovative wireless software with source. Then Google screws with privacy and Apple becomes "evil" and screws some vendors. Yikes! The /. Crew most not be happy today!
what a stupid and terrible headline. there have been ipod taxes enacted and talked about in other countries, so a headline like this makes it seem like the story will actually be about taxes imposed on ipods and customers who buy them.
think.
-- lol pwned
The article says that this tax isn't for all accessories, only the ones that attach to the connector on the bottom of the device.
It's also something where they are trying to insure that these devices won't harm them in the long run. TFA states that having the "Made for iPod" seal on these devices ensures that these deviuces will work on current and future iPod versions.
If I was Apple, I wouldn't want some third-rate speaker system to be designed for the current generations of the iPod, then not work on all future versions, having this burn the buyer into not wanting to buy newer versions of said speakers to continue to enjoy his/her iPod and feeling jaded by the iPod that a certified piece of gear would be gauranteed to do from the box. I think it's a good move for the future.
Napalm is nature's toothpaste
Many many software companies based their products on the existance of Windows, does MS have the authority to ask for a cut of the sales?!!
"Let me put it to you this way: I earned capital with the iPod, geek capital, and now I intend to spend it. It is my style" -- Steve Jobs
Beauty is in the eye of the beerholder.
I suspect the bigger companies will go along, seeing the fee as away of keeping smaller players from moving into the market.
Think Deeply.
Apple is providing technical information and support for accessories that want to electronically interface with the iPod. There are no charges for cases and other types of products. Apple is also standardizing on the iPod connector and including form factor adapters with iPods to allow them to continue working with existing accessories. These services and adapters will cost Apple money. Maybe they are charging too much, maybe not, but it is not unreasonable to charge them. Both parties will benefit. The vendors get to continue to ride the iPod phenomenon and Apple gets to offset some, or maybe all, of the cost of supporting and accomodating these guys.
Are you really being serious?
Step out of the Apple box and think about the millions of products in this world and the millions of additions that you can buy for them without paying a kickback to the parent. The first thing that comes to mind is aftermarket products for cars which is probably a billion dollar industry. I do not have to pay Ford license fee to put a Fram filter, Monroe shocks, Michelin tires, Panasonic stereo, a Midwest Mustang hood scoop, BBS rims, a trailer hitch, a Vortech supercharger, larger after market fuel injectors, and a set of heads from some company in central Florida on my car. To even think that some licensing agreement with Ford should exist before hand 100% is completely insane.
Even using the iPod for an example, do you think anyone selling headphones with a standard 3.5mm stero plug should have to pay Apple for it?
Please don't give me that typical poor Apple story about Apple ensuring only quality accessories are available and no junk allowed. The free market will sort that out and has for every other after market product ever made for probably the last hundred years.
This is nothing more then an attempt by Apple to cash in on others improvements. Almost as bad and very similar to the RIAA wanting a part of the iPod sales money from Apple for the same thing. RIAA thinks Apple owes them money because iPods play their music and profits from their work --> Apple wants money from accessory companies because they use the iPod to make products for and profit from apples work. Wow, change your mind now? Do you consider one bad and one good?
If anything, a heathly after market of iPod things would HELP overall iPod sales.
I am sorry to rant if I misunderstand your position on this
Bad boys rape our young girls but Violet gives willingly.
That's an oxymoron.
Look, one might disagree with Apple's policy for any number of valid reasons. For example: it's a poor long term policy if one believes in the importance of business relationships; it stifles Apple's secondary manufacturing market and thus impacts the utility of their product line the consumers; the short term gains aren't worth the potential long term losses... blah blah blah. But then you'd be forced to argue the profit potential and long term effects of their policy instead of simply claiming a negative gut reaction. So you don't like it. If it pisses you off enough, buy a competitor's product. But don't claim it is proof of a monopoly. There are plenty of third party portable mp3 and digital music players on the market. Apple can neither force their competitors out of that market, nor can they use the iPod to leverage their other market (computers, Operating Systems, and application software). Deal. --M
I don't want to defend the policy, because there are plenty of reasons why it might be a mistake for Apple to try to extract revenue with partnering manufacturers like this. However, just to respond to your Ford analogy, if a third party manufacturer wanted to include the line "Made specifically for Ford Bronco" on the packaging of their product, Ford would certainly demand a contractual agreement with the manufacturer in order to deal with trademark issues. They might even demand a payment for use of those terms.
The situation with Apple is no different. Apple demands payment for allowing third party manufacturers to use the term "Designed for iPod", almost certainly a trademarked term. With this agreement they also provide some technical specs to properly interface with their product. There is nothing improper with Apple's demands here. Maybe it's bad business sense - or maybe not. *shrug* --M
The gist of this is not that people can't make products for the iPod or can't use the phrase "for the Apple iPod" but rather that there's a special connector with a proprietary protocol. To get the information for interacting with the iPod, you have to pay to be part of the program. Car stereo manufacturers have been doing this for years (Alpine's Ai-net or Sony's S-Link). Most third-party groups might complain about the price, but paying it puts them in a position to have few competitors. The complaint isn't about the 'tax'. Rather, they're annoyed by the bump in price. An open protocol would make the iPod more popular with end users, but saturate the market with alternative accessories. If the accessory manufacturers can afford to buy in, it's in their best interest to do so and hope the other guy doesn't.
Nobody is telling the manufacturers that they can't develop and sell products for the iPod. Apple just won't help them without compensation. Besides, while popular, Apple hardly has a monopoly on mp3 players.