Profiting From the iPod Economy.

This article discusses the business prospects of Apple Computer Inc.'s iPod digital music player. It's not just Apple anymore. A slew of smart companies are thriving off the world's most popular digital music player. Already this year, Apple has sold more iPods than it did in all of 2003. So there's even more room for growth in the accessory market. As the snazzy gadget has evolved into the centerpiece of an entire music system, complete with an online store, consumers have begun demanding more sophisticated, higher-priced products that bring the iPod into their living rooms and, especially, their cars. Monster Inc. has sold more than $6 million worth of 14 different iPod accessories this year alone, including cases and wireless transmitters that connect iPods to FM radios. The key to Monster's success was playing off both its established reputation and its ability to act quickly to meet Apple's needs. Apple prefers to work with companies that have proven track records. Smaller companies can get a leg up by partnering with other members of the iPod economy. Earlier this year, SoundGate developed an interface that controls an iPod from any car stereo with a CD changer.