Apple to exclusively sell Dock Connector adaptors

Though the change in design is the most talked about feature of the upcoming iPhone, another headline grabbing feature is that the next iPhone aka the iPhone 5 will come with an all new Dock Connector. The reason this component is gaining a lot of attention is because it is believed that all future iOS devices will come equipped with this new Dock Connector that is a lot smaller than the 30-pin connector used on current iOS devices. Many consumers of third party docks have been left clueless as to how their devices will be compatible with this new connector if they are to buy upcoming iOS devices. A report by iLounge has provided the answer for this by stating that Apple will initially be the exclusive vendor of Dock Connector adaptors that will be compatible with third party iPod/ iPhone docks.Jeremy Horwitz of iLounge states, “Additional sources have confirmed to iLounge that Apple will be the exclusive initial vendor of a new Dock Connector Adapter, to be sold individually and/or in three-packs. According to sources, the Dock Connector Adapters will sell for approximately $10 each or three for $29, with Apple-branded new USB cables selling for $19 each. For reference, Apple’s MagSafe to MagSafe 2 Converter sells for $9.99, while international pricing for Apple’s earlier iPhone Micro USB Adapter is €9 ($11) or £8 ($13).”The report also comments on what this means for third party vendors and the author states that Apple could cash in on this by being the sole distributor of these Dock Connector adaptors. The report states, “Some developers fear that Apple will corner the market for both the adapters and cables, much as it did with MagSafe connectors for MacBook laptops, using licensing agreements and threats of lawsuits to prevent less expensive third-party solutions from coming to market. One source notes that Apple will reap a windfall by limiting competition in this manner, generating revenues of $100 million for every 10 million Dock Connector Adapters it sells for $10. According to the source, Apple estimates that it will sell the first 10 million adapters by the end of 2012.”

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