Because Apple is not making enough money they have decided to make sure they they get all the benefit from folks buying books for their fabulous equipment. Sigh…
Apple no longer thinks different
Remember when Apple thought different? They wanted us to see them as being like us, their customers. They wanted us to believe we had similar values, goals and aspirations. They wanted to convince us that, with their help, computers would be different, life would be different, and we would be different. We would be happier, more productive, more fulfilled.
“iTunes takes a 30 per cent cut of e-book sales. Under the Agency Model that went into effect last April when the iPad was released, the publisher gets 70 per cent of the selling price of the e-book. It doesn’t take a math genius to figure out that if Apple is taking 30 per cent and the publisher is getting 70 per cent, there’s not much left for Amazon, Barnes & Noble, Borders, Books-A-Million, Kobo, Google, Sony, etc.
“The situation with non-Agency publishers is fuzzier but probably worse. The e-book stores typically pay about 50 per cent of list price for those, then sell them at a significant discount off list (sometimes below cost). Giving Apple 30 per cent of the selling price is going to be a big problem, regardless of whether prices have to be jacked up or the e-book store has to take substantial losses on each e-book sold.
Either way, today there’s little about Apple that “thinks different.” It’s the same old corporate greed that every company that dominates a market winds up embracing.