Why Are iPod Accessories So Darn Pricey?

Ever wonder why a lot of iPod and iPhone accessories seem kind of, well, overpriced? Popular mechanics reports that Apple uses a proprietary authentication chip in its portables that makes it impossible for third-party companies to create iPod- and iPhonecompatible accessories without signing an often-costly agreement with Apple.

For instance, I could go on eBay and buy a generic $2 video cable that would work just fine with my iPod video. New iPhones and iPods, however, require the “officially licensed” Apple cables, nd these can run up to $50.

Needless to say, the chip not only increases prices, but forces accessory companies to cut corners and cheapen production to pay for the Apple license while maintaining a consumer-friendly price point.

Of course, it’s understandable that Apple would want to have some control over the quality of accessories designed for its products, but most of the manufacturers interviewed estimated that up to $20 of the retail cost of iPod and iPhone speakers is directly attributable to fees levied by Apple. Ouch.—david dahlquist