It requires that any hardware manufacturers jump through the "Made for iPod/iPhone/iPad" process and licensing before their product can be marketed at being compatible. Yes, there are some costs incurred for the manufacturer that are paid to Apple, along with licensing royalties, but it also ensures that the device being connected behaves the way Apple needs it to behave (i.e., not drawing too much current, etc). Because their cable is proprietary, they can enforce this whereas if it were a micro-usb, they couldn't. This does have a lock-in effect though that I think you are overlooking. Think of all the iPod docks out there, or iPhone car mounts... Lets say you have entire home theatre tricked out and part of that system includes a nice, beautiful dock that only works with Apple's devices... If your iPod dies, what kind of device will you buy to ensure continued compatibility. Yes, this new dock port will force some to reconsider an apple product since their old docks won't work any more, but for those that do choose to buy into the new port, Apple has just locked in a large percentage of those users who might otherwise buy a samsung galaxy if not for the investment they already made.