Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Apple will no longer license aftermarket power adapters for iPhone 5

appleinsider.com

Post reply on HN
Print view View original

31–40 of 60 posts

Re: Apple will no longer license aftermarket power adapters for iPhone 5

#31

Post by fpgeek »

saurik wrote: post #6
mmanfrin wrote: post #3

Because licensing them means they miss out on their $39.95 per cable.

An alternative explanation (as they could raise their licensing fees instead, and the costs of managing licensing fees is much lower than constructing and distributing cables; when you look at their profit report these cables are just not a major part of their business) is that they found that third party cables often had minor aberrations that damaged the contacts on the device, leading to increased warranty repair…

Or Apple could just be cautious about the new connector.

This is their first new dock connector since 2005. They may want to see it (or third-party accessories for it) in the field before approving third-party adapters. There may be electrical details that are tricky to get right. And so on.

Normally I'm quite willing to believe the worst of Apple, but here there are too many reasonable explanations for limiting third-party adapters and cables for the moment. If the limitations end up not being temporary, that would be another story, but until then...

Re: Apple will no longer license aftermarket power adapters for iPhone 5

#32

Post by addlepate »

ameyamk wrote: post #8

I wonder why companies like apple keep so much goodwill at stake with "get every penny from customer" moves. I can understand why BestBuy would do it (They are already dying with high cost low margin items), but apple?

That's shortsighted, I would say. I have had a lot of things replaced or serviced by them, easily and for free, so I wouldn't agree that they try to get every penny from me.

Re: Apple will no longer license aftermarket power adapters for iPhone 5

#34

Post by Steko »

huxley wrote: post #27
Steko wrote: post #17

"generating revenues of $100 million for every 10 million Dock Connector Adapters it sells for $10" What is this, I don't even... do they pay by the word at AppleInsider?

I'm surprised that the author didn't realize that Apple could generate revenues of $1 billion for every 100 million Dock Connector Adapters it sells for $10 ...

The ironic thing is the math is probably off. I'd guess at least half of the adapters will sell at wal-mart, target, amazon, etc. and I'd guess the wholesale cost is around six fifty. Exercise left to the reader.

Re: Apple will no longer license aftermarket power adapters for iPhone 5

#36

Post by delinka »

blinkingled wrote: post #19
redial wrote: post #14

According to iLounge, Apple expects to sell $US 100 million by the end of this year. That is no small amount but it's certainly not a large one for them. This makes me think that this move is about embracing the new dock connector, fast. They are gonna force the accessory makers to build the new 9 pin connector into their products instead of building the old 30 pin connector and bundling the adapter. Given that there…

Good for Apple. What about the users though?

What about them? I'm impressed that Apple's actually pricing the 9-pin stuff down around the prices others have charged for 30-pin stuff.

Re: Apple will no longer license aftermarket power adapters for iPhone 5

#37

Post by Jarshwah »

mpchlets wrote: post #29

I wonder when apple will start offering their own Internet and not allow Apple users to connect to the Internet that we all know and love. They are creating non-standards to squeeze more dimes out of its very loyal users.

And remember the myriad of cables that came with each new model of each brand of phone? A different cable, 10 years later. Yet when companies blindly continue with compatibility at the expense of all else, you get a different bandwagon of people complaining about THAT!

"How dare apple charge for a new cable". Meh, whatever - it's $10.

Re: Apple will no longer license aftermarket power adapters for iPhone 5

#38

Post by delinka »

Steko wrote: post #34
huxley wrote: post #27

Earlier quoted context omitted.

I'm surprised that the author didn't realize that Apple could generate revenues of $1 billion for every 100 million Dock Connector Adapters it sells for $10 ...

The ironic thing is the math is probably off. I'd guess at least half of the adapters will sell at wal-mart, target, amazon, etc. and I'd guess the wholesale cost is around six fifty. Exercise left to the reader.

If it's Apple-branded, the wholesale cost isn't that low. I'd expect more like $8.50. I tried the Apple reseller thing a number of years ago and you could buy systems cheaper as a student than as a reseller. You'll notice that the Walmart price on Apple items is barely under what you pay Apple directly. Apple likes to keep retailer margins very tight.

Re: Apple will no longer license aftermarket power adapters for iPhone 5

#39

Post by delinka »

jgross206 wrote: post #35
raldi wrote: post #33

Why do you need a license from Apple to make a cable?

I imagine you don't, but you need a license to use any Apple trademarks, logos, or trade dress in your marketing and packaging.

Actually, they own patents on the pin-out for the 30-pin connector. They probably own patents on the 9-pin as well. Doesn't really matter if the patents are enforceable, the threat of a lawsuit versus the cost of the license keeps manufacturers from being too ballsy - do you risk your entire margin (or more) fighting Apple over pin-out licenses?

Also, if your accessory is not "approved," then it stands a chance at voiding your customers' warranties. That'd be bad for your business.

Re: Apple will no longer license aftermarket power adapters for iPhone 5

#40

Post by Steko »

delinka wrote: post #38
Steko wrote: post #34

Earlier quoted context omitted.

The ironic thing is the math is probably off. I'd guess at least half of the adapters will sell at wal-mart, target, amazon, etc. and I'd guess the wholesale cost is around six fifty. Exercise left to the reader.

If it's Apple-branded, the wholesale cost isn't that low. I'd expect more like $8.50. I tried the Apple reseller thing a number of years ago and you could buy systems cheaper as a student than as a reseller. You'll notice that the Walmart price on Apple items is barely under what you pay Apple directly. Apple likes to keep retailer margins very tight.

I could totally be wrong but my understanding was that the markup on most Apple products was ~15% (as you say) but the markup on Apple's accessories (headphones, itunes cards) was nearly double that.

Even in that case though, you're right that six fifty would be low-ish.

Post reply on HN