Apple was originally authorized to make big money by MFI accessories
Apple was originally authorized to make big money by MFI accessories
California time, on July 22, Apple officially to the San Francisco Federal Court, accused of seven Apple A1189 Battery U.S. companies selling unauthorized iPod, iPhone and iPad chargers, speakers, and data lines, and accessories. Apple accused in the proceedings of these peripheral devices without an Apple authorized low quality, poor stability, and lead to incompatibility issues of Apple products. And these unlucky firms, Harry Tong, but the authority to verify its validity by the Apple factory.
Crazy “fruit powder” (Apple fans) may now suddenly realized that they love Ukraine and Uzbekistan to buy the speakers, leather, etc. Apple accessories are so expensive is because each one must be from Apple charges.
“If your speakers sold one hundred U.S. dollars, Apple will charge from 20 to 25 U.S. dollars.” U.S. investment bank Kaufman Brothers analyst Shaw – Wu in an interview with Bloomberg News said in an apple called “MFI” The program, manufacturers must obtain permission to sell Apple’s accessories. And sold a license for each accessory, Apple will charge 20-25% of the share.
Although Apple’s earnings report did not disclose in detail the components of this “sideline” to Apple’s revenue contribution, but around Apple products, a huge industrial chain has been formed parts. Previously, an Apple dealer told reporters China region revealed that many dealers are not authorized by Apple to sell iPod, macbook and other products to make money, but on sales of Apple accessories such as speakers make more money, this is the industry an open secret.
That the interests of the people to heart, apparently Apple itself appeals.
Apple “MFI” authorization system accessories
Harry Tong, a digital battery company in Shenzhen, in 2008 began production of Apple authorized battery and charger plug, now Apple authorized external battery accessories worldwide, one of the mainstream, iPhone-related products with annual sales of 2 billion yuan.
Harry through the production of every piece of Apple accessories, will paste called “MFI” tag, which Dell Inspiron 9300 Battery the English “made for ipod”, “made for ipad”, “made for iphone” in short, the unified design by Apple The logo in use has a very strict rule, and even the font size of each pattern, color, resolution, all with detailed standards.
“To get Apple’s authorization is not easy.” Xiaoding Bang and Apple recalled the whole negotiation process.
Since most power-hungry Apple electronic products, so Harry introduced through Plug rechargeable batteries by Apple fans around the world in hot pursuit of Harry through the development of the apple products in its dedicated mili brand stores in China’s electronic products, such mili Charger priced from 200-400 dollars.
In 2008, Harry pass on to Apple’s Asia Pacific headquarters in Beijing, MFI submitted applications, mili apple samples also accepted a series of rigorous tests, such as the ATS test, mainly for battery type compatibility with Apple products, to ensure that no Apple will use the failure models appear, while another OTA test, it is against the mili products will impact on the iphone signal test.
In addition to these tests, Apple’s product design is also available to Harry through the beginning of a series of production standards to ensure that the external product of technical indicators. “Our design and tooling costs are very high, leading to a price much higher than the cottage accessories products.” Xiaoding Bang said.
When asked when the profit margin products, Shaw avoided, just smiled and said: “profit is considerable.” The one doing cottage industry products is estimated, “Genuine 300% profit margin should be about.”
However, Apple’s hot-selling products and did not let Xiaoding Bang were able to breathe, Harry Tong’s products in the introduction, a variety of similar products not authorized by Apple influx, and quickly in major electronics stores and Harry Link product was placed in a piece of similar size, and much lower prices, quickly grabbed a big chunk of the market through SONY VGP-BPS9 battery Harry.
Xiaoding Bang told reporters that they long ago to communicate with the Apple side, I hope Apple come out against unauthorized manufacturers, but they knew quite well the complexity of the domestic cottage market. “Although there is no marked some cottage products Apple logo, but also retail outlets claimed that iPhone exclusive, but more some manufacturers of products made abroad, Apple Authorized OEM, but also affix their products work with apple’s signs, which edge ball practices are difficult for us to effectively use the legal rights for protection. “Xiao said.
Through April this year, Harry had just played with a cottage field case, but settled out of court ended, the other will be related to the infringing products Withdraw. But how many manufacturers continue to produce, sell unauthorized products, I am afraid Harry Tong and Apple are difficult to count.
“No matter how the suit’s cottage on the domestic market is the role of certain warning.” Xiao Dingbang said.
“Only 2% of the authorized Apple accessories”
Shanghai Xujiahui in the major electronics stores, and Apple related accessories business has become the mall one of the most profitable trading. However, some research I discovered that the reporter, not all accessories are “honestly” label affixed Apple MFI.
Apple’s authorized distributors in several stores, such as the U.S. commitment, idea and other distributors, journalists see all the speakers, chargers and other products, will strictly enforce the “MFI” program. Store’s sales staff told reporters, because these stores and have been directly affected by an Apple authorized Apple factory inspection from time to time, so they can not sell without authorization of Apple accessories.
However, formal authority and these were a large number of shops standing shoulder to shoulder small shops, some IT store in Shanghai, to sell more Apple-related products business to be able to occupy an entire floor mall. If you tell these businesses need to buy an apple iphone plug-in charger, each boss will come up with a genuine enthusiasm mili, put up a profile almost exactly the same but the prices are different from many of the products.
Shenzhen Island Electronic Sales Manager Zhangkui Dong told reporters about the reason: the South Island cottage manufacturers such as the wholesale price of only 6.5-7 per iPad charger, through distributors to market the terminal, but the retail price of 60 yuan left and right, and makes a great difference between genuine exports each year in 30 million -5,000 million, HP Pavilion ZV5000 Battery and has been stable in operation for 6 years.
Another Houjie expensive electronics factory business development manager Tan Yongjian claimed, these cottage Apple accessories have a high profit, manufacturers are “30% -40% profit.” The electronics factory started to do iphone related products a year, had a profit, showing that the market demand is not small.
In addition to the city in the computer wholesale, and some cottage products also entered the business over, the South Island and the Wal-Mart have long-term partnership. “We generally enter the supermarkets will take a neutral packaging, but some will be labeled ‘made for iphone’ and other signs, which are high imitate.” Zhangkui Dong said.
“Now this market at the most only 2% of the licensees, Apple’s current actions are mainly directed against non-authorized scale manufacturers, the Chinese market is so fragmented the cottage, would be difficult for a complete ban.” Tan Yongjian, said the lawsuit, cottage makers seem so calm and collected.
Apple’s chances of winning the right to receive geometry?
Although this action only in the United States, but for large parts of domestic apple producers, also Qiaoshanzhenhu role.
“From our past experience, multinational companies and local Chinese companies to fight similar battles over intellectual property, basically 10 to play nine to win.” Chun-Quan Liu, senior intellectual property attorney told reporters that local manufacturers of these products is often the Apple and other major brands products in toto, of course, would violate Apple’s intellectual property rights.
Chun-Quan Liu pointed out that even as the speakers, plug-in chargers designed entirely by the component manufacturers of products, because the products involved and the Apple connection, it is difficult to say there has not committed to Apple’s intellectual property rights. “A body of electronic products is often as high as thousands of patents, sometimes an interface has a large number of patents in there.”
But Chun-Quan Liu also analyzed Road, taking into account the special situation of intellectual property rights in China, Apple is a big company and some small parts manufacturers litigation, and will not be cost-effective, because even if China’s current similar to Apple’s successful lawsuit, the amount of compensation is limited , “and some small manufacturers directly to the company closed, you lose sight of them.” Chun-Quan Liu said.
Interestingly, recently invented in China several Apple accessories, too tempting to let Apple like a fishbone stuck in the throat.
According to well-known U.S. consumer electronics Web site Engadget.com reported that the Chinese HP pavilion dv9000 Battery manufacturer ZTE ZTE has unveiled at the Apple itouch peripheral devices. This called U3200 Apple accessories, is moving ZTE to the U.S. the third largest CDMA operator Sprint customized products. It is reported that this product is currently the Federal Communications Commission review.
Shortly before that, there is one called “derivative technology” companies (Yosion Technology) of the Chinese small manufacturers, introduced the “apple peel 520″ on the back button communication module, plug in the module on the same SIM card iPod touch can call other functions to achieve.
These accessories after the release of the widely promoted on the Apple iPhone and operator binding sales strategies, have a certain impact. For example, iPhone in the United States and AT & T network binding sales in China Unicom on the sale, but once the iPod touch phone operators can achieve limited functionality, is bound to Apple’s existing distribution patterns of certain impact.
Chun-Quan Liu analysis, the communication module entirely by Chinese companies own invention, but it is an infringement of Apple’s intellectual property rights depends on the specific circumstances, “such as these products will damage Apple’s original design, damage the performance of other Apple products.” Apple is ZTE and other Chinese companies will be sued, is still difficult to predict.
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