has been widely maligned as "selling out" and heralding the
"death of eBooks" for agreeing to higher electronic book
prices. Amazon.com traditionally bought eBooks wholesale for
half the list price ($26 typically for hardcovers), then sold them to
customers for $9.99, stomaching the approximately $3 loss per
title.Apple declined such a deal and since it has helped
cause multiple publishers to demand new deals from Apple. Among
them are Rupert Murdoch's HarperCollins Books, Macmillan,
Mr. Murdoch personally
cited the Apple deal as justification for demanding higher
prices from Amazon.However, new
reports indicate that Apple's eBook prices may not be as
consistently high as expected. Apple CEO Steven P. Jobs had
already announced that he had personally worked out deals with five
of the six largest publishers -- Hachette Book Group, HarperCollins
Publishers, Macmillan, the Penguin Group and Simon &
Schuster. According to insiders knowledgeable
about Apple's arrangement, the Cupertino electronics company will
keep 30 percent of the sales revenue, and give publishers 70 percent
(of which authors will get a cut). The arrangement is identical
to Apple's app store model. Most new fiction and nonfiction
will sell in the range of $12.99 to $14.99 (unlike Amazon's
traditional $9.99).More significantly, Apple insisted on
inserting provisions that gave it flexibility to discount some
bestsellers much lower -- possibly at $9.99 or lower. Could
Apple sell some of the most popular eBooks at prices lower than
Amazon's traditional ones? That remains to be seen.It
seems that where Amazon's deal gave its customers the broadest
selection, Apple prefers flexible pricing on the handful of hottest
titles. The arrangement should also allow Apple to actually
profit on some of its eBook sales (those at $14.99), while
potentially selling other titles at the market's cheapest
prices.. Apple's iPad starts
at $499, while Amazon's eBook reader, Kindle, starts at $259.
One key advantage Amazon currently holds is it uses E-Ink, which uses
less power and reduces eyestrain. Many have complained about
the iPad's 10-hour estimated battery life and the fact that titles
may be hard to read on the LCD screen. However, that advantage
may be erased as Amazon is reportedly contemplating replacing the
Kindle with an
quote: Apple couldn't maintain their huge margins if they sold any of their products at, or near, cost.
quote: Market price is how much people are willing to pay for it. It has nothing to do with cost.
quote: Apple declined such a deal and since it has helped cause multiple publishers to demand new deals from Apple .
quote: But it is magical. You can't beat magic with technology...
quote: You've obviously never shot a wizard.
quote: With an LCD you'll have to stop reading and take a break because your eyes will literally hurt after a while.
quote: but I can go hundreds of pages reading a book.