Apple Accessories Think Outside The Dock

By Lisa Johnston -- TWICE, 10/18/2010

NEW YORK — When it comes to iPod and MP3 player accessories, nothing gets manufacturers salivating like new Apple models. According to The NPD Group, based in Port Washington, N.Y., sales of iPod and MP3 player accessories increased 8 percent year over year.

NPD said the category sold 8.9 million units from June through August of 2010, compared with 8.2 million units in June through August 2009. NPD includes the following products in its definition of MP3 player accessories: AC adapter/chargers, car chargers, docking cradle cable, cases/bags, skin/faceplates, wireless/FM transmitters and modulators, mounting kits, batteries, docking speakers, arm bands, cassette adapters, voice recorder, remote control, audio connectors, splitters, complete kits, non-docking speaker, and some combinations of these products.

Despite this increase, some of which can be attributed to the crossover between iPod and iPhone accessories, iPod accessories aren’t expected to see much of a lift this holiday selling season, with sales in the category likely to be flat.

Ross Rubin, NPD industry analysis director, said that MP3 players have been experiencing year-over-year declines. “In general, [the market] will likely see some decline in iPod accessories as the volumes decrease. There also seems to be a bit of a delayed effect — we see consumers get iPods for holiday gifts, and then we see a bit of a bump in accessory sales after a delay as they’re looking for things to complement the player.

“The new form factors and new dock design of the iPhone renders some of the old speaker docks incompatible for charging, so we may see some of the replacement market kick in,” Rubin added.

The new Touch and Nano models have been able to pave the way for new opportunities for accessory manufacturers. “The iPod Touch has been doing well,” he said, “and that opens up some possibilities in terms of things like video docks or some photo accessories that really weren’t much of an opportunity with the older models. Even the video-conferencing support on the products opens up new opportunities in terms of microphones, stands and other things that might not have been as important in the past.

“We may also see some shifts,” Rubin noted. “With the new iPod Nano, there may be less interest in say an armband for jogging. But, on the other hand, we’re starting to see other kinds of things it might clip too — like these wrist straps that turn it into a sort of watch.”