iPhone Accessories?

Now that the iPhone has been released, would there be an opportunity for companies to develop accessories to be used with it? Fareena Sultan, a marketing professor at the College of Business Administration at Northeastern University addresses some of these questions below.

Is there an opportunity for Entrepreneurs to develop iPhone accessories?

Yes.
Accessories for the iPhone present a definite opportunity for entrepreneurs.
At present, the iPhone is running on the “cool” factor. Consumers are paying $600 for this new cool “toy” (95% of the units sold are the 8 GB version costing $600). Since the iPhone is targeted as a cool toy, the market is wide open for “cool” accessories.
Additionally, iPhone users are expressive and communicative. They are investing about $2000 for owning an iPhone (price of the phone and a 2 year contract with AT&T). These premium consumers would also be looking to accessorize their cool premium phone with cool premium accessories.
Soon after the launch of the iPhone, companies introduced accessories such as headphones, headsets, skins or cases, chargers, adapters and docks. Although the market is still wide open to innovative entrepreneurs, this market is also a challenging one. Since the iPhone is targeted as a premium product, it is doubtful that users will choose fake or cheap accessories for their expensive “toy.”

When's the best time to jump in? Will it last?

The best time to jump in is now. Early entrants will gain traction in the accessories market. Apple plans to sell about 1 million units by September 07 and 10 million by end of 2008. So, the market for accessories is expected to be growing and profitable. If the iPod is any example of the accessory market’s potential for a device from Apple, the future for the accessory market for the iPhone looks promising.