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The Billion Dollar iPod Accessories Market

Posted by Zonk on from the can-i-have-a-piece-of-that-pie? dept.

OleSurinam writes "The NYTimes has a story about the lucrative iPod accessories market." From the article: "Making add-ons for the iPod is a $1 billion business. Does that sound like hyperbole? Consider this. Last year, Apple sold 32 million iPods, or one every second. But for every $3 spent on an iPod, at least $1 is spent on an accessory, estimates Steve Baker, an analyst for the NPD Group, a research firm. That works out to three or four additional purchases per iPod."

2 of 59 comments (clear)

  1. Very Unlike Apple by DorkusMasterus · · Score: 3, Interesting

    This is exactly why I wonder why Apple has not become more of an "exclusive provider" for most of that stuff. Mind you, I like the idea of being able to buy a comparable-quality item on the cheap, but still... It's very unlike Apple to give away that kind of market share.

  2. Lessons learned from Pixar, Disney, the Gap ... by QuatermassX · · Score: 4, Interesting

    I'd like to know more about the lessons Steve learned from his time merchandising kids movies with Pixar and Disney, being on The Gap's board and the influence of Millard Drexler. The iPod ecosystem seems like an old-fashioned consumer goods story - accessories, add-ons, merchandising (I'm thinking of Star Wars et al), etc and having friendly, inviting stores in which to buy the goods. How far along would they be without those Apple Stores?

    It seems to me the New Apple's ability to actually capitalise on a successful product is chiefly due to killer merchandising plus an expanding retailing empire. And a bit of good luck!

    I'm sure this will be a case study in a business textbook one day ...