No more buying books for Kindle app on ipad/iphone
This is a discussion on No more buying books for Kindle app on ipad/iphone within the iPad Apps forums, part of the iPad App Store category; There is no hypocrisy; and I have a good understanding of the publishing business.
It is no good just repeating "Amazon makes money off Apple." ...
There is no hypocrisy; and I have a good understanding of the publishing business.
It is no good just repeating "Amazon makes money off Apple." They don’t, any more than Esso makes money off GM whenever people fill up their Chevrolets.
Equally, Apple won’t be making money off Amazon, who have quite reasonably decided that the 30% Apple was demanding was too steep.
As for your suggestion that Apple could control the market by disallowing third party books… that is absurd. They would be committing corporate suicide as far as that the e-book market is concerned. There would be an immediate stampede to other platforms. Apple would instantly lose market share, not gain it. That’s why they haven’t done it – they aren’t stupid.
08-07-2011 11:27 AM
I would answer "yes" to both questions. Also, Apple is not a publisher, so what they are charging is not a royalty.
Originally Posted by thewitt
Further, Apple's stupid policy here alienates users and makes the Kindle app and similar apps more difficult to use, particularly for new and non techie users. A fellow commuter who recently won an iPad 2, for example, is having a hard time figuring out how to make Kindle purchases, even though friends have tried to help here with this.
Ultimately this hurts Apple as much as it hurts Amazon since it undermines the iPad user experience. I would have thought that the Apple people would be smarter than this. People buy iPads to uses them, not to admire them or to praise Steve Jobs' ingenuity. Even what the Apple people think is a sound business decision is a mistake if it results in people having a bad experience in using the iPad.
Apple's focus should be on getting people to use the device with the best and most user friendly and most easily accessible apps possible. This is their greatest competitive advantage over their competitors. And to be blunt, even if Apple charged nothing for apps, they would still make a profit.
And although it is unlikely that Apple would drop the Kindle app altogether, this fear is not good PR for Apple and decreases the goodwill associated with the iPad.
There are a host of reasons for Apple to treat book vendors and magazine publishers differently than they do other app developers. But ultimately Apple can do whatever it wants. So can current and potential iPad customers. And as the Blackberry executives have found out, there is no such thing as brand loyalty when people believe that they can find better value elsewhere.
+1 for this post.
Originally Posted by singlestick
Apple can charge whatever it wants. Of course, I know how to buy books without the app. Thing is, Apple could've asked for a reasonable amount, considering profit margins for book sales aren't extravagant, and Amazon probably would've paid. What's happened is that my iPad has lost a feature, and when I go comparing hardware each time I want a new tablet, that will be a consideration.
No company is good or evil to me. They're all out to make profits, and that's perfectly legal and expected. But there's no point diminishing your own hardware's features and not making money at the same time, as Apple has done by demanding 30 percent and getting nothing instead.
I agree, there is a big difference between publishers and other apps, and 30 per cent is completely out of the question. This is a loss all around for everyone, Apple, Amazon, and the eBook readers. I say this as someone it has NO effect on - I buy almost all of my books in the Kindle format, and I always use the computer as I like the interface better than buying directly on the iPad.
Originally Posted by singlestick
Why are so many arguments in thus discussion so off base
Amazon is not publishing these books, they are retailing them. Margins are not thin, they simply are not willing to leave you the inApp purchase button and pay Apple like the rest of us do for inApp purchases.
They remove the button and make you go to their website to purchase content for their app and Apple is a demon because of it?
I'm sorry but I disagree.
I guess I'm out of this discussion because I'm clearly taking a position that no one wants to acknowledge, however this is NOT a publishing issue, it's a retail issue on a product with no physical carrying costs that's being sold at a 200% markup.
If Amazon wants to sell this through the inApp purchase rules they agreed to in their development agreement, they need to pay their commission payment like the rest of us.
Disagree all you want. It's a straw man argument to say that others insist that Apple make nothing on in-app sales. It's simply that many people recognize that 30 percent isn't doable given where ebook margins stand.
Originally Posted by thewitt
It's ridiculous to assume that every vendor has the ability to pay 30 percent.
You might take note that some app developers have pulled out of the iOS market simply because they didn't make enough to pay Apple 30 percent. You might also note Amazon's most recent earnings breakdowns, which show a gross profit margin of 25.4 percent. And that is significantly higher than what its ebook sales have been producing, given Amazon's long-term approach to trying to build market share on thin margins.
iOS is a platform like Windows. When Kindles application was introduced in 2009 it was approved with access to outside links. So were Nook, Kobo, borders and all the rest. Every application was approved by Apple to work with outside links to the sellers web site. None of these purchases were processed by Apple's iTunes. If they were, then Amazon and anyone else asking Apple to process such a sale should pay a royalty.
The fact is that Apple wanted to attract apps for iOS. I know one of my expectations when I bought my iPad was to use it as a reader. Whether it was eBook rising sales or Sony's application, something caused Apple to decide to apply in app clause specifically to Media. And they just didn't care how the alienated all their own customers.
As for Kindles's tablet offering an iBooks app - I have no idea if apps will even be a possibility or what the terms will be, if and when Amazon ever offers EPub. Just too theoretical right now. Another question is will Apple ask Stanza (owned by Amazon) to provide a link to iBooks....unfortunately, now that all links are gone, we don't know. But I would have thought that would have been a reasonable request.
I like the Kindle app but I'm not saying Amazon is blameless. Both companies are vying for control of ebooks. But at least with Kindle, as consumers, we got a great selection and lower prices. Apple usually takes such care with offering a great experience for their customers. This is very disappointing.
No Kindle store button...no problem
Is this just another scheme for Apple to force us to buy from them instead of other retailers? It's like your parents telling you not to do something...but you then end up doing it more.
Taking away the kindle store button makes me want to buy only from Kindle and Nook instead of the apple book store now.
I was buying equally between these book stores...now i will probably end up supporting/buying from Kindle and Nook more than ever.
keep it up
I didn't see all your posts earlier. I'm so glad to see that I'm not alone in my prospective.
Are all of you aware of the Agency Model plan that Apple came up with earlier this year? I only read about this recently. Evidently a significant number of popular books are published through what are dubbed the Big 6 publishers and their brands. From my understanding these publishers would sell at wholesale prices and Amazon would retail them at much lower prices than the suggested list price. aApple came up with this model that put publishers back in control of pricing and these books had to be sold at the suggested list, with only a 30% margin to the bookseller. So basically Apple was demanding the full margin on the most popular titles. An undoable possibility they had to realize when they demanded it. Anyway, that's why we see "price is set by the publisher" all the time now. Which really irks me since I do agree with the Witt on one point - digital titles can't cost as much to produce and distribute as physical books.
As for your suggestion that Apple could control the market by disallowing third party books… that is absurd. They would be committing corporate suicide as far as that the e-book market is concerned. There would be an immediate stampede to other platforms. Apple would instantly lose market share, not gain it. That’s why they haven’t done it – they aren’t stupid.[/QUOTE]
I totally agree, but the fact that Apple actually threatened to remove these apps entirely and only compromised on the removal of the buy button puts up a red flag for me. I love the iPad, but I would think that Amazon and all the other booksellers will limit their investment in iOS moving forward. Which is a shame for everybody and probably a shot in the arm for android. I really do strongly support competition, but I have to say it again....Shame on Apple.
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