iPod accessory manufacturers are set to be slugged a massive 10% of all revenue if they want to connect with an Apple iPod port.
Apple is set to slug partners a massive 10% licence fee for access to an iPod port. The move will significantly impact iPod accessory manufacturers with some considering dropping accessories from their portfolio.Among the companies set to be hit is Bose who make the highly successful Bose iPod docking station music system. Dominique Water the head of Bose’s Asia Pacific operations said “All Apple partners were told of the decision some weeks ago. This is a massive licence fee which will not sit comfortable with many partners. Bose is not happy as the proposed fee is excessive by any standards”.
A spokesperson for Altec Lansing said “we were told of the port fee some weeks ago. It is ridiculous. It is excessive and will result in many partners re thinking there relationship with Apple. It will also push up the cost of Apple accesories”. they said.What Apple intend to do is take 10% of all revenue from anyone making an iPod accessory that operates by being plugged into an Apple iPod music player. Normally a fee of between 1 & 2% is charged. The move which is seen as being aggressive could net Apple millions in licence fees.Rob Small Marketing Manager for Apple
Another Bose executive said” What we need is for the MP3 vendors running the Microsoft operating system to get together and deliver a common port accross all MP3 devices. We also need a common docking design so that people like Bose can develop common accesories. Currently Apple is the only one with a common port as a result accesory manufacturers are designing for the iPod Apple platform”.