Sunday, September 11, 2005
Northwest Herald

Hot-selling iPod sweetens accessories business
http://www.nwherald.com/BusinessSection/291824784910340.php

By TOM MUSICK
tmusick@nwherald.com

NW Herald Online Banner


LRO and Jamie with RoadTrip+

Kristy Ann Mann / Northwest Herald
Lawrence R. O'Connor (right), President and CEO of Other World Computing in Woodstock, and Jamie Dresser, Product Manager, display the RoadTrip!+, an iPod attachment that transmits to a FM frequency on a car radio and charges the iPod at the same time.
click to enlarge

Apple iPod owner Alex Kohl wants to listen to music in his car without hauling CDs everywhere.

Kohl, 17, of Lake in the Hills, searched for a solution recently as he browsed iPod accessories at Best Buy Co. Inc.'s store in Crystal Lake. For $99.99, a device called TransPod FM would allow Kohl to play music from his iPod through his car stereo while keeping the device's battery charged – and keeping his CDs safely stacked in his room.

Customers such as Kohl form the basis of a growing secondary market surrounding the wildly popular iPod, made by Cupertino, Calif.-based Apple Computer Inc. With more than 20 million iPods sold, companies seeking momentum from the portable music player compete to sell battery packs, radio transmitters, and even flame-covered decals to make the devices stronger and sharper.

At Best Buy in Crystal Lake, where dozens of iPod accessories hang near the entrance, supervisor Valerie Jacobs said customers' lifestyles dictated which products were best. She said runners could buy armbands or belt clips to hold their iPods, while frequent travelers might buy a Monster iCase travel pack.

Although sales figures were unavailable, Jacobs said iPod-related products were hot sellers at Best Buy, which added options according to what customers said they preferred.

Many iPod owners also buy products from Other World Computing, which makes several iPod accessories and sells dozens more from its headquarters in Woodstock and online at www.newertech.com. Sales of iPod accessories and Macintosh-related products were surging, said Larry O'Connor, president and chief executive officer.

"I expect to see significant growth," said O'Connor, whose iPod-related products account for about 10 percent of his company's $36 million in annual sales.

See iPOD, page 2D

"IPod battery sales will easily double or triple just from the sheer number of iPods out there."

In addition to producing iPod batteries touted as lasting more than twice as long as Apple's, Other World Computing developed two FM transmitters in response to what O'Connor said was a market high in price and low in quality. RoadTrip, a basic transmitter, sells for $14.99, while RoadTrip+ costs $27.95 and includes an iPod charger. O'Connor said tens of thousands have been sold.

"Half of the battle is getting people to believe that it really will work for that price," O'Connor said.

In response to companies' brisk sales of iPod accessories, Apple started a "Made for iPod" program in which it endorses products in exchange for a slice of profits. Other World Computing decided not to participate in what some call Apple's strong-armed tactic, but companies such as Lawrence, Kan.-based Griffin Technology and Compton, Calif.-based Belkin Corp. have signed on. Attempts to reach Apple officials could not be reached for comment.

Despite some tensions, continued growth of iPod means continued growth of Mac sales. And all of that means continued profits for Apple, Other World Computing, and many other companies.

"IPod accessories are definitely an area that we're very happy to be participating in," O'Connor said. "It's a good area of growth for us."

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