After years of being derisively labeled the "toy maker" among personal computer vendors, Apple is taking the plunge into the toy market. The company recently said it has licensed Toy Biz Inc. to create the new "Apple for Kids" line of "electronic learning aids." The so-called ELAs will be designed, built and marketed by Toy Biz, a New York-based company that has similar deals with Marvel Entertainment Group, Gerber Products Co. and Jim Henson Productions. The first crop of toys, due next summer for 2- to 6-year-old children, will cost less than $100 each.
Although Apple won't invest any money and will have no role in creating the toys -- other than exercising veto power to make sure they meet its quality standards -- Apple will receive a payment for every toy sold.
"[The deal] is an extension of Apple's R&D and distribution," said Jon Holtzman, Apple director of entertainment marketing. "We get paid good royalties while gaining expertise in a business we don't know much about."
Toy Biz Creative Director Avi Arad said Apple's prowess in the K-12 and home markets makes it the premier brand name for Toy Biz's initial foray in the burgeoning ELA category.
"Our strength is to take well-known brands and build them into multimillion-dollar, category-specific toy lines," Arad said. "The Apple license offers us an opportunity to build an important brand of learning products and bring the Apple franchise into the youth markets."
