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  • Apple Lowers Licensing Costs for its MFi Accessories


    Apple reportedly reduced the licensing costs for accessory manufacturers who are producing official gear for iOS devices last month. According to the folks over at Mac Otakara, this reduction applies to Lightning cables as well as other accessories that are a part of Apple’s Made for iPod, iPhone, iPad Program.

    For those of you who didn’t know, Made for iPod (MFi) was launched in 2005 as a licensing and quality control program that allowed iPod accessory makers to ship their products with an Apple-approved “Made for iPod” label. At launch, Apple reportedly charged companies that wanted to participate in this program a 10% fee based on the wholesale cost of the device. Apple expanded its MFi Program to include the iPhone and iPad as those devices were added to the company’s product portfolio, with Apple’s Lightning cable introduced last in 2012 falling under the program’s guidelines due to the serialized authentication chip embedded in the connectors. At last year’s Worldwide Developers Conference, Apple again extended the licensing to include game controllers for iOS devices.

    The game controllers have generally arrived with higher pricing than expected by consumers, with some of the blame for pricing and quality issues being placed on Apple’s requirements administered through the MFi Program. Beyond licensing and technical requirements, Apple allegedly also requires manufacturers in the MFi Program to agree to the company’s supplier responsibility code. This code takes steps to ensure that employees have access to safe working conditions and requires companies to submit to inspections that ensure compliance with Apple’s Code of Conduct.

    Overall, with the lowered licensing costs for its MFi accessories, we should be seeing a lot more on the market in the future.

    Source: Mac Otakara via MacRumors
    This article was originally published in forum thread: Apple Lowers Licensing Costs for its MFi Accessories started by Akshay Masand View original post
    Comments 3 Comments
    1. fleurya's Avatar
      fleurya -
      So 10% of wholesale cost is what people were so up in arms about with Apple's expensive accessories? 10% of wholesale isn't really a lot. Even at 10% of retail, that would only push a $30 accessory up $3! And just for the sake of argument, if they slashed the cost by 5%, that's only a $1.50 savings.

      I guess it's all the other requirements that may make things more pricey, and if that's the case, then this reduction just the licensing portion probably won't have any impact on retail pricing or product availability at all.
    1. WHUDS's Avatar
      WHUDS -
      Quote Originally Posted by fleurya View Post
      So 10% of wholesale cost is what people were so up in arms about with Apple's expensive accessories? 10% of wholesale isn't really a lot. Even at 10% of retail, that would only push a $30 accessory up $3! And just for the sake of argument, if they slashed the cost by 5%, that's only a $1.50 savings.

      I guess it's all the other requirements that may make things more pricey, and if that's the case, then this reduction just the licensing portion probably won't have any impact on retail pricing or product availability at all.
      10% is the normal profit on retail electronics so it may be a big deal
    1. CZroe's Avatar
      CZroe -
      10% was significant enough that Apple refused to support Next Track and Previous Track over Bluetooth AVRCP even when iOS4 launched just so that accessory makers would have to continue paying Apple to interface through the dock and headphone connectors. Bluetooth is an open standard and would allow docks to control iPods without Apple making a penny, so they delayed as long as possible. After the iPhone became their primary business and started to look bad as the only phone without such features they didn't care so much about docks and iPod accessories. Mid-way through iOS4 they added it but I had been using Music Controls Pro on my jailbroken phones for ages before that (added full AVRCP instead of just Play/Pause).