Apple’s iBooks plans have previously been lauded by the publishing industry for allowing them to control the pricing. But it seems Apple is angling for the ability to sell the most popular books at a discount. Is that good new for folk lusting after an Apple iPad?
It was initially thought that iBooks sold for the Apple iPad would be priced between $12.99 and $14.99 thanks to a complex formula from the publishers which links ebook prices to the price of print editions.
The publishers Apple has already inked deals with (Hachette Book Group, HarperCollins Publishers, Macmillan, Penguin and Simon & Schuster) would nab 70% of the sale price with Apple taking the other 30%.
But now sources close to the negotiations have told the New York Times that Apple has slipped clauses into the contracts that allow it to enforce discount prices on best sellers.
The deal means prices for popular titles could be much lower, potentially matching the $9.99 price set by Amazon. The move is about Apple being able to combat Amazon and other rivals who discount heavily.
Amazon apparently loses money on ebook sales for the Amazon Kindle. It’s method is based on building sales for the Amazon Kindle with ebooks sold as a loss leader.
Amazon pays publishers a wholesale price usually equivalent to the half the list price of a print edition and loses around $3 on each digital edition it sells for $9.99. Under Apple’s agreement with publishers, it and they would still make money on every sale.
While we know the Apple iPad will hit the UK in late March and early April but when iBooks will reach us is still a mystery. We can only hope that Apple will negotiate some deals with UK publishers which will give us good value ebooks.
Due April | £TBC | Apple (via New York Times)
