How long does the "gold mine" of Apple Accessories last?

Apple accessories market is a neglected gold mine

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Before the launch of the iPhone 6 in 2014, the related accessories market has been surging, and the manufacturers' orders are constantly coming. They have already prepared the goods layout according to the size and model. Nowadays, Taobao searches for iPhone6 ​​protective case, charging treasure, data cable, tempered film, earphone, keyboard, metal frame and other accessories. The search results of each accessory are almost tens of thousands, and the number of sellers is numerous. According to media data, there are more than 3,000 manufacturers operating peripheral products in the field of Apple accessories in China, with an output value of at least 100 billion yuan.

Shenzhen Huaqiang North and Beijing Zhongguancun are also two major distribution bases for domestic Apple accessories. Obviously, the Apple Accessories market is a huge but neglected gold mine. An accessory business said: A few years ago, an MFi mobile power supply cost cost around 40, the ex-factory price was three times the cost price, and the market price was seven times the cost price. However, as more and more manufacturers are short-listed, this ultra-high profiteering has been cut.

Apple MFI controls the accessories market, making it a part of Apple’s huge profit source

Because of the chaos in the Apple accessories market and its huge profits, Apple launched a project called MIF ("Made for iOS") in July 2011 to grab this fat. Prior to this, Apple launched a complaint against a number of electronic peripheral goods sellers, pointing out its reliability, compatibility with Apple system products, poor security and other issues. It is for this reason that Apple launched the MIF project to control the Apple accessories market. That is to say, the manufacturer must obtain the permission of the MIF certification to produce the parts, and the parts manufacturer that has not obtained the Apple certification will be limited by the certified chip. Third-party accessory manufacturers must join the Apple MFi project, sign the agreement and pay the MFi license fee, and Apple has thus achieved a high profit share (20% to 25%).

Apple will assign a specific serial number to these parts suppliers and include a specific authentication chip. But at the same time, the authentication chip can be copied, but once copied, Apple will be able to disable unlicensed accessory products through software updates. For example, in China, the iPhone6 ​​data cable of the cottage is already available before the iPhone6, but these data lines are similar to the original ones, but since they are not certified by MFi, Apple can update these non-certified data lines through software updates. Disabled.

Apple's strong launch of MFI has two major benefits for Apple. One is to cut into the accessory market to collect licensing fees, making it a part of Apple's own huge profit source. The second is to relatively standardize the standards and rules of the Apple accessories market. The third is to maintain the brand image of Apple, because the strength of Apple's parts manufacturing enterprises is uneven, the products are mixed, and Apple cut into the retailer-certified parts sales, which ensures the quality of the parts manufacturers to a certain extent, and shuffles the unqualified manufacturers.

Apple accessories market out of control: the flood of cottages, manufacturers in advance production, retirement occurs annually

Despite this, Apple MFI is still unable to eliminate the widespread presence of cottage accessories manufacturers, and the hidden dangers of the cottage accessories in the security, but also caused damage to the Apple brand, but the more popular the market, the more the cottage accessories will come into being. Because on the user side, Apple's accessory sales channels are too broad, and users have an information asymmetry in the perception of the accessories market. In addition, for example, the MIF protocol and chip authentication can not control the disabling of the mobile phone casing, as long as the size and shape are appropriate, it can be mass-produced, because the mobile phone casing and the software do not interface, and are not limited by the software upgrade certification chip.

The iPhone case is an insignificant big business, because the user demand is placed, according to the US market company NPD data, iPhone shell users account for almost 87% of iPhone users. The mobile phone case is a low-tech job. In the UK, the mobile phone case sold for 14 pounds, which means that it is close to 130 yuan, and the low-cost profit is very rich.

Just because of the lucrative profits, chaos has followed, and many manufacturers have started to launch production plans based on the shape design of the iPhone. From the iPhone 4s to the iPhone6 ​​plus, almost every new iPhone release will be produced in advance by the mobile phone shell company, and the best iPhone sales time will be stuck in advance. Due to the rumors that many manufacturers have misunderstood the shape design of the iPhone, the large-scale scrapping of the mobile phone case produced by the manufacturer in advance due to the mismatch in size and shape is occurring year after year. But driven by high profits, whether it is mobile phone shells, earphones, data lines and other accessories manufacturers will be laid out year after year, which leads to large-scale waste of accessories, but also a representation of market madness. It is expected that after the launch of new iPhone6S and iPhone7 products, the in-depth work of Apple's confidentiality will make it more and more difficult for accessory manufacturers to obtain real iPhone design information. According to rumors, manufacturers who produce production layouts in advance will obviously not reduce, which may cause the Apple accessories market to continue. Going out of control.

Authorized accessory manufacturers can't keep up with Apple's software and hardware to push the pace of the layout

The out-of-control of the Apple accessories market is also reflected in the fact that Apple's soft and hard integration ecosystem has entered the field, which will drive the madness of the accessories market in this field. We have seen that the iPod has driven the popularity of accessories such as alarm clocks, speaker bases and protective covers. Nowadays, Apple released the CarPlay connected to the car to control the car, which led to the popularity of the car market accessories, and the accessories of the Apple CarPlay system in the industrial chain were launched in a short time. Such as the Belkin Bluetooth car hands-free kit, Cobra iRAD 900 radar detectors. Although Apple Watch has not yet been listed, a large number of accessory manufacturers have already laid out early, frequent actions, and released a series of accessories, aiming at the best time for the card position to profit. For example, Composure wooden charging stations, various third-party straps, and other accessories around the Apple Watch have been released. As Apple's ecological layout continues to extend to the field of intelligent hardware and other fields, this makes the ecological industry chain of Apple accessories more and more long, more and more scattered, becoming more and more difficult to control, all kinds of hidden profits and accessories. Security factors are a hidden danger for Apple in the future.

At the same time, the hidden concerns of the accessory manufacturers that have obtained Apple's MFI license certification also exist. Apple is too strong, and the accessory manufacturers just follow the role of the soup behind Apple. For example, Apple's hardware and software ecological connection is further promoted, and there are high requirements for accessories. Many accessory manufacturers may not meet Apple's high technical standards for accessories within their own technology and capabilities. This will undoubtedly drag down the stability and ecological layout of the Apple brand, and will lead to the Apple accessories industry chain. The tension between the contradictions and interests is opposite.

For example, we know that Apple's future strategy is to promote NFC payment, but the accessories with magnetic and metal materials are determined by Apple to affect the optical imaging and NFC functions of the iPhone6/6 plus, so Apple issued a cautious use of magnetic properties. A notice with a metal frame. In the future, with the advancement of NFC payments, it is difficult to say whether the strong Apple will disable such accessories, which will undoubtedly affect the interests of Apple's authorized magnetic and metal protection frame accessories brands. According to the relevant information, "similar to Best, Rock, Nas, etc. are all authorized brands of Apple's MFI project to do Apple's buttons, and do metal frame, and also Apple's accessories processing plant." But Apple Experience and security are the result of blocking the magnetic or metal frame, resulting in damage to the accessories business, which in turn may lead to anxiety and conflicts of interest in the Apple Accessories industry chain.

Out of control in the accessories market, Apple's future big problem

The anxiety of accessory manufacturers is also that Apple's interface modification and appearance changes for new products will provoke the nerves of countless accessory companies. The strength of Apple will impose various restrictions on the specifications and quality of the accessory manufacturers, and the production and supply of the entire link will be firmly controlled. The manufacturer's products will be scanned by Apple's proprietary software before entering the warehouse. It is required to control the direction and loss of each original.

Due to the huge market of Apple accessories, driven by profits, the accessories manufacturers have to obey the strength of Apple, and the appearance, size and configuration of the iPhone are constantly changing. The result is that Apple controls the entire MFi industry chain, but it is getting harder and harder for accessory manufacturers to adapt to Apple brand specifications, and manufacturers are under increasing pressure. In early 2014, Apple lowered MFi for the first time in China. The restrictions on the equity and minimum purchase volume of the accessories have caused many authorized manufacturers to reduce the price of the accessories. In addition, various manufacturers of cottage accessories are trying their best to crack the authentication chip of the Apple interface. These factors have led to chaos and worries in the future of the Apple accessories market.

In the future, more and more areas of Apple accessories will be extended, and more and more manufacturers will be selected. Domestic merchants are following up on MFi licenses on a large scale, and the price war of MFi products is constantly being played. Profits are beginning to be compressed. As mentioned earlier, Apple is also reducing the minimum purchase amount and equity, and the profit share of licensees to Apple is still It has reached 20%~25%, which also makes the price reduction of the high-priced parts products of the manufacturers unavoidable, resulting in continuous reduction of profits, which also reflects that the value of the "gold mine" in the Apple parts market is being over-exploited. The profiteering period has passed, and many parts manufacturers may consider switching to Huawei's domestic camps such as Xiaomi.

From the current point of view, under the ambition of Apple's “connecting everything”, the pace of software and hardware eco-layout is accelerating, which leads to the continuous expansion of products in the accessory market to various fields, and the profit of accessories manufacturers is constantly being reduced, coupled with the proliferation of cottage accessories. Apple has to tighten control and continuously improve quality control standards, which leads to an industry chain of anxiety and tension. The anxiety and tension of this industry chain will lead to uncertainty in the future of the Apple accessories market. For many parts manufacturers, the value of the “gold mine” mining of Apple accessories is gradually being diluted. How to avoid the future accessories market continues to run out of control, let it drag on the pace of Apple brand and soft and hard integration, and deal with the interests of accessories suppliers to achieve a win-win situation with Apple, has become a major problem for Apple in the future.

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