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iPod’s Success Breeds Refurbishing, Repair Businesses
Sunday, July 16th, 2006 at 3:00 PM - by Brad Cook
As the iPod's popularity has soared, so have the fortunes of businesses dedicated to refurbishing and repairing the MP3 players. Some of them, such as PodSwap.com, allow customers to trade in used iPods -- working or not -- toward the price of new or refurbished iPod. In 18 months, PodSwap.com has taken in 5,000 iPods, and founder Gregg Radell says that he typically receives 1,500 inquiries each weekend, according to a McClatchy Newspapers article.
Reporter Joseph Tartakoff estimated that at least 12 companies are in the iPod repair and refurbish market. One iPod entrepreneur, Brandon Jones, is just 21 and has been running BrokeniPods.com for 18 months. He fixes between 200 and 400 iPods each month, with the average repair price around $100.
While the iPod's success is a big part of these companies' growth, some feel that the iPod's perceived fragility plays a role too. "It's the Corvette and not the tank," said Aaron Vronko, business manager at iPodMods.com. "It looks sleek and works well and doesn't hold up to a lot of damage."
Apple spokeswoman Natalie Kerris told Mr. Tartakoff that "an iPod is designed to last four years." Harvey Rosenfeld, president of The Foundation for Taxpaer & Consumer Rights, responded: "This is not a throwaway camera. These are a sophisticated piece of electronic equipment that people will assume will last a long, long time. And when they don't, that's improper." His organization currently has a lawsuit against Apple over weaknesses in the iPod nano pending.
Analyst Rob Enderle estimated that "15% of iPods will fail within one year," which he said is "roughly comparable to other small electronic devices, such as cell phones," according to Mr. Tartakoff, who added: "Nevertheless, he said, cell phones are much easier and cheaper to repair. 'Apple's view is they want the customer to buy a new one on a regular basis,' Enderle said."
Ms. Kerris replied that the iPod's failure rate is under 5%, which she characterized as "fairly low" when stacked against other consumer electronics.
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