iPhone accessory makers get a boost

IPhone accessory makers are getting an unexpected boost from Apple’s recommendation that users buy a case to fix a glitch on their phones.

“It is good news,” said Tim Hickman, founder and chief executive officer of Hard Candy Cases in San Francisco. Apple’s suggestion may add allure to an already popular accessory, he said. “The demand is there and Apple has built it.”

Apple made the recommendation after last week’s debut of the iPhone 4, which drew complaints that it loses reception when held a certain way. The company advised customers to hold it differently or use a case. While that solution has irked some buyers, it could benefit Hard Candy, Belkin International and other accessory sellers — including Apple itself.

The cases, typically made of rubber, plastic or recycled materials, are already part of a growing market. Mobile accessories generated $135 million in US revenue in the first quarter, according to NPD Group Inc. That indicates annual sales of more than $500 million.

“Consumers are putting more information on these products and they are relying on them more, so they are more willing to invest in protecting them,” said Ross Rubin, an analyst with Port Washington, New York-based NPD.

It’s too early to tell whether the proposed fix for the antenna problem will boost case sales, Rubin said.

Apple is selling its own iPhone 4 cases in six colours for $29 each. They’re made of a piece of rubber known as a ‘bumper’, which surrounds the outer rim of the phone. The accessory doesn’t cover the back or front of the device, prompting the iPhonesavior.com blog to call it “the thong underwear of protective iPhone fashion”.

Shaw Wu, a San Francisco-based analyst with Kaufman Bros LP, said Apple may have to start giving away the bumpers with the purchase of a phone as a way to alleviate customer concerns.

Accessory sales are “almost pure profit” for the company, said Wu.