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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."

1 of 59 comments (clear)

  1. Re:Very Unlike Apple by damsa · · Score: 5, Insightful

    It's the same reason why Apple doesn't make cameras and printers anymore. Unless they develop inhouse it's likely that they will have to pay for licensing fees and lag behind companies that can pump out products quicker. That's why the dock connector is such genius. Apple gets a small royalty for each accessory using the dock connector without putting R&D into new products that might fail miserably.