High-margin accessory makers have high hopes for Apple's iPad

Posted:
in Current Mac Hardware edited January 2014
Third party accessory companies have profited immensely from Apple's iPod and iPhone lines of products, and now they are preparing for next month's launch of the iPad with an assortment of products, including cases, chargers and more.



Analysts expect Apple to sell between 1 million and 5 million iPads in the product's first year, which is well below what the hardware maker ships each year in iPhones and iPods. However, some believe iPad owners will spend more on accessories because of the device's larger form factor and higher price point.



Mark Rowan, president of Nashville, Tenn.-based Griffin, told The Wall Street Journal that his company began drawing up designs for iPad cases within hours of Apple's announcement last month. The market for iPod and iPhone accessories that Griffin and other companies inhabit was estimated by investment firm Piper Jaffray to have a $3.7 billion worldwide value in 2009.



One problem for accessory makers preparing for a new product launch is actually getting their hands on the device. GelaSkins, which offers decorative sticker covers for mobile devices, said they intend to have a template for a product within hours of receiving the iPad. The company plans to offer a variety of products within a day via their Web site.



Jamie Elgie, director of product management for mobility with accessory maker Belkin, told BusinessWeek that he believes iPad accessories could be as big a part of their business as iPhone and iPod accessories. "It's going to be an incredibly important portion of our business," he reportedly said.



While consumers will undoubtedly want to protect their iPad investment, which will be at least $499, they'll have to do so at prices higher than they might be accustomed to. While most iPhone products from Scosche sell for between $15 and $35, the company's larger iPad stand will carry a bigger price tag, too, at $50.



BusinessWeek also noted that accessory makers typically sell their products with margins of 70 percent to 90 percent, making it a particularly lucrative business.



But those companies will also have to compete with Apple, which revealed its own accessories when it introduced the iPad last month. The hardware maker will sell a keyboard dock for charging the device and allowing keyboard input, a case that protects the iPad or allows it to be stood up for watching movies, and a camera connection kit that allows users to import photos and videos from a digital camera.



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Comments

  • Reply 1 of 118
    msnlymsnly Posts: 378member
    I just realised that Apple's case would allow a front facing camera to work.
  • Reply 2 of 118
    blastdoorblastdoor Posts: 1,875member
    I'd like to see the accessory makers come up with something a little more clever than pretty cases. Between bluetooth, wifi, and the dock connector, it seems that there should be a lot of potential to make some really useful accessories that actually interface with these devices in a more meaningful way. Certainly there are some examples of this sort of thing (Nike, for example), but I would have thought we'd have seen a lot more by now (or maybe we have and I'm just not aware of it??)
  • Reply 3 of 118
    A lot of iPad accessories are going to come out. Some are already on sale now.



    With the iPhone having a dozen different types of connections from a dozen different companies, you can bet accessory makers will get a good boost once iPad goes on sale.
  • Reply 4 of 118
    msnlymsnly Posts: 378member
    Quote:
    Originally Posted by ElmCityWeb View Post


    A lot of iPad accessories are going to come out. Some are already on sale now.



    With the iPhone having a dozen different types of connections from a dozen different companies, you can bet accessory makers will get a good boost once iPad goes on sale.



    I love how you find every chance to advertise.
  • Reply 5 of 118
    I expect to buy both the charging keyboard stand and the folio/case that Apple has announced.



    I doubt I'll buy the camera kit - I find 30 pin adapters clunky and ugly.
  • Reply 6 of 118
    Quote:
    Originally Posted by MsNly View Post


    I love how you find every chance to advertise.



    I don't begrudge someone advertising their business as much as possible. If you have a problem with his behavior? Ingore him (or me ).



    It's the trolling rants that annoy me. he was at least.. subtle.
  • Reply 7 of 118
    Thanks reliason. I don't mean to spam, but it seemed relevant to the topic of this thread.



    That said, I intend to leave my signature as my only source of self advertising from now on. I'd like to spend more of my time here reading and engaging in iPad/iPhone/Apple related discussions more than self serving posts.





  • Reply 8 of 118
    Good to hear, the stock ipad case apple try to sell is expensive and ugly.
  • Reply 9 of 118
    pmzpmz Posts: 3,433member
    Quote:
    Originally Posted by ElmCityWeb View Post


    Thanks reliason. I don't mean to spam, but it seemed relevant to the topic of this thread.



    That said, I intend to leave my signature as my only source of self advertising from now on. I'd like to spend more of my time here reading and engaging in iPad/iPhone/Apple related discussions more than self serving posts.









    Don't listen to the complaints, all your doing is promoting a legitimate business and being RELEVANT to the thread at the same time.



    That's more than any of the people on my ignore list have ever contributed, and yet they are still allowed to post.
  • Reply 10 of 118
    Quote:
    Originally Posted by emulator View Post


    Good to hear, the stock ipad case apple try to sell is expensive and ugly.



    Oh, I'm getting the Apple iPad case anyway, even if just for the Apple logo Actually, every time I see these iPad pictures I get more and more desperate, I can't wait to put my hands on one! Or two!
  • Reply 11 of 118
    Probably going to forgo most of the accessories...don't want to really have to carry anything like chargers or keyboards around....definitely some sort of thin light protective cover/case, though.



    going to try to have it replace my MacBook as far as being out and about and looking fwd to the increase in battery life compared to the my first gen intel macbook, <3hrs!



    Then get the 27 iMac to replace my 20 iMac...and a 2gig time capsule to replace my old Apple extreme router...then with my 3Gs should be good to go!
  • Reply 12 of 118
    Quote:
    Originally Posted by hugodinho View Post


    Oh, I'm getting the Apple iPad case anyway, even if just for the Apple logo Actually, every time I see these iPad pictures I get more and more desperate, I can't wait to put my hands on one! Or two!



    two iPads = two apps at the same time



    I'm a heavy multitasker, but I'll probably wait for rev 2 to buy a second one.
  • Reply 13 of 118
    blastdoorblastdoor Posts: 1,875member
    Quote:
    Originally Posted by pmz View Post


    Don't listen to the complaints, all your doing is promoting a legitimate business and being RELEVANT to the thread at the same time.



    That's more than any of the people on my ignore list have ever contributed, and yet they are still allowed to post.



    fwiw, I tend to agree.
  • Reply 14 of 118
    Quote:

    Don't listen to the complaints, all your doing is promoting a legitimate business and being RELEVANT to the thread at the same time.



    Thanks, I feel the same way. I hate spam too, I've ignored people on forums, but I don't think it's a big deal when the subject matter is appropriate.



    Anyhoo, I haven't seen another case for the iPad, besides Apple's, that has that triangular prop up feature. That's good for typing, watching movies, whatever. There are bound to be imitations sooner or later.
  • Reply 15 of 118
    icyfogicyfog Posts: 338member
    It'll be interesting to see what the accessory companies produce. I'm very interested because I plan to buy an iPad the first day I'm able.
  • Reply 16 of 118
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by emulator View Post


    Good to hear, the stock ipad case apple try to sell is expensive and ugly.



    So far, that case is the most attractive part of the iPad for me. The design looks incredibly functional.
  • Reply 17 of 118
    blastdoorblastdoor Posts: 1,875member
    Quote:
    Originally Posted by solipsism View Post


    So far, that case is the most attractive part of the iPad for me. The design looks incredibly functional.



    I agree -- I think that while the case might not excel in aesthetics, it does look very useful.



    A case that also allowed one to carry an Apple wireless keyboard around (or does this one already do that too?) would be another functional improvement.
  • Reply 18 of 118
    nasseraenasserae Posts: 3,152member
    Quote:
    Originally Posted by solipsism View Post


    So far, that case is the most attractive part of the iPad for me. The design looks incredibly functional.



    That case looks like the portfolio my wife bought me few years ago, though it was much cheaper then. I think it looks nice and practical. I can see it being used with BT keyboard instead of the dock+keyboard accessory.
  • Reply 19 of 118
    Quote:
    Originally Posted by NasserAE View Post


    That case looks like the portfolio my wife bought me few years ago, though it was much cheaper then. I think it looks nice and practical. I can see it being used with BT keyboard instead of the dock+keyboard accessory.



    Is kind of interesting when you look at the higher end model of the iPad at 829.00 then if you have to buy the case at 70.00 and a BT keyboard at 70.00 that would total 969.00. Which is 30.00 less then getting a Macbook.
  • Reply 20 of 118
    paxmanpaxman Posts: 4,583member
    Quote:
    Originally Posted by emulator View Post


    Good to hear, the stock ipad case apple try to sell is expensive and ugly.



    Huh? You mean the one depicted in the article? I think it looks fantastic. But whether you like it or not I am sure the functionality will be replicated far and wide. The horizontal angled position is particularly good. Who needs a keyboard?
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