http://www.macnewsworld.com/story/Vs4UF3ipCUcBwU/High-End-Accessories-Essential-to-iPod-Experience.xhtml "High-End Accessories Essential to iPod Experience" Complements, Cooperation, and Competition commentary by Mark Pearson This article describes a market of complements around a product, in this case the iPod. While the article isn't very deep, it does implicitly pose some interesting questions (only some of which I'll attempt to answer here). For instance, of the approximately five hundred iPod accessories, Apple only provides twenty-three. What is the strategic decision behind Apple not being more active in the market of complements around its own product? Apple has an incentive to keep the market of complements vibrant and competitive. After all, for those people that consider certain accessories necessities, the cheaper the accessory, the more Apple can charge them for the iPod itself. Because of the strength of Apple's brand, competitors would be leery of offering accessories that duplicate Apple's offerings, as customers would probably buy _Apple_ accessories (when they are available) to go with the _Apple_ iPod. Hence the accessories markets in which Apple participates are likely to be less competitive. In turn, if Apple enters many accessories markets, competitors might expect Apple to enter more and therefore not even bother trying to offer iPod accessories at all. This seriously harms the innovativeness and competitiveness of the accessories market. This is also an example of businesses with whom Apple simultaneously competes and cooperates: Apple needs to give out information on iPod specifications to others to let them build accessories while it is simultaneously competing with some of these businesses in a few of the accessories markets. How Apple chooses to handle this might obviously depend on the information needed for the accessory, how revealing it is about Apple's (trade) secrets, how important Apple believes having the particular accessory available to consumers is to its own business, and, likely, whether Apple could be liable for anti-competitive practices by holding back certain information. (Apple does indeed have a very powerful position in the handheld music player market, with the majority of the market share.) As a final tangential thought, the iPod is a fashion statement and many accessories (e.g. covers) are to the iPod what fashion accessories are to the original piece of clothing. I wonder if Apple has a few consultants previously employed in the clothing fashion business to see what insights they have on how accessories and the accessories market effect business development. (They probably do. I wonder what they say.)