Several budding repair firms have found a big market in fixing busted music players
The Miami Herald
Since the iPod debuted in 2001, Gregg Radell has used five of the über-popular music and video players. He lost one, another broke, a third ran out of storage space, and he decided to replace the fourth. Each time, he bought a newer model.
Sensing there was a market in refurbishing rather than replacing the devices, the Miami businessman started PodSwap.com about 18 months ago. The company allows customers to credit the value of used iPods — even if they’re broken — toward new or repaired ones. PodSwap.com has already handled 5,000 iPods, he said.
Radell said there is so much demand, he limits his advertising on Google. “We can get 1,500 inquiries over the weekend,” he said.
In the booming online iPod repair business, PodSwap.com is a small player. At least 12 firms operate in the market. One, iPodMods.com, fixes roughly 24,000 iPods a year. Another, iPodResQ.com, repairs 250 a day — albeit on its ”biggest days” — in a 15,000-square-foot warehouse in Olathe, Kansas, according to its owner.
Brandon Jones, owner of BrokeniPods.com in Orem, Utah, is only 21, yet a year-and-a-half after starting his business, he fixes between 200 and 400 iPods a month. Only now is he drawing up a business plan. He said the average price of a repair is $100.
Other firms that previously fixed other computer parts have also entered the industry, and iPod repairs now make up the majority of their business.
Analysts and repair shop managers said the industry is growing because iPods are easy to break and tough to repair. It helps that the iPod’s manufacturer, Apple Computer, is reluctant to repair broken players, they say.
Radell said ”the single weakest link” is the iPod’s hard drive. “When they’re being carried around and being tossed up and down, they go through such a variety of environments that I think the hard drive has a tendency to fail,” he said.
The newest iPod, the nano, avoids that criticism because it sports flash-based memory rather than a hard drive. Because it’s about the size of a credit card, though, Radell said the screen can break. Then there’s the battery, which is difficult for a user to replace without help.
”It’s the Corvette and not the tank,” said Aaron Vronko, the business manager at iPodMods.com in Kalamazoo, Mi., which has grown from two to 12 employees in just over two years. “It looks sleek and works well and doesn’t hold up to a lot of damage.”
On Internet bulletin boards, there are a slew of complaints about the iPod. In 2003, two discontented customers started http://ipodsdirtysecret.com, criticizing Apple’s battery replacement policy (the site no longer exists). The support discussion boards on Apple’s website, http://www.apple.com, are also filled with complaints.
An Apple spokeswoman, Natalie Kerris, countered that the popularity of the iPod speaks for itself.
”With more than 50 million iPods sold worldwide, the vast majority of our customers are extremely happy with their iPods,” she said, adding an iPod is designed to last four years. But several groups have sued Apple, alleging the device is defective. Last August, Apple settled a class-action lawsuit, in which plaintiffs claimed Apple had misrepresented the durability of iPod batteries. Another class-action lawsuit is pending in Los Angeles, charging the screen of the nano breaks or scratches with regular use.
”Some people have scratched screens, other people have [broken screens]… and that’s just from putting it in your pocket,” said Harvey Rosenfield, president of The Foundation for Taxpayer & Consumer Rights in Santa Monica, Calif., which is suing Apple over the nano. “This is not a throwaway camera… These are sophisticated pieces of electronic equipment that people will assume will last a long, long time. And when they don’t, that’s improper.”
But several analysts said the problems have more to do with the popularity of the iPod and the tendency of users to abuse them than with Apple’s manufacturing policies.
Bob O’Donnell, a vice president at technology research firm IDC, said, “anytime you have that many of anything” some will not function properly. Fifteen percent of iPods will fail within one year, estimates Rob Enderle, principal analyst at the Enderle Group in San Jose, Calif. He said that’s roughly comparable to other small electronic devices, such as cellphones. Nevertheless, he said, cellphones are much easier and cheaper to repair.
Apple’s Kerris said iPods have a failure rate of less than five percent, which she said is ”fairly low” compared to other consumer electronics.
”As with any complex consumer electronic product they can be broken,” she said. “For example, they can be dropped or mishandled.”
What bodes especially well for third-party repairers is Apple’s warranty policy, Enderle said. All new iPods come with a one-year warranty, but the warranty does not cover damage caused by the user. Rosenfield complains Apple charges a $29.95 ”shipping and handling fee” on all warranty repairs performed six months after the date of purchase. After the warranty expires, Apple will replace an iPod for $249; a nano, $189. Other models cost slightly less.
”Apple’s view is they want the customer to buy a new one on a regular basis,” Enderle said.
But Kerris said Apple had been consistently recognized for its customer service, and iPod owners can get in-person help at the company’s stores.
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