High-margin accessory makers have high hopes for Apple's iPad
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.
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.
Comments
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.
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.
I doubt I'll buy the camera kit - I find 30 pin adapters clunky and ugly.
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.
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.
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.
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!
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!
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.
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.
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.
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.
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.
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.
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.
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?