[Burninator]

Why (and How) Apple Killed the $9.99 Ebook

Publishers joining Apple's iBooks store are turning their back on Amazon and its vision of the flat $9.99 ebook. Apple forced the music industry to charge 99 cents per song, so why are they helping publishers set their own prices?

To screw Amazon.

The difference between Amazon and Apple is this: Amazon is very much in the ebook business to sell ebooks. They want you attached to their platform. That's why the Kindle Reader is on both PC and iPhone, as well as the eponymous e-ink device. Ebooks are huge for them. They sell six ebooks for every 10 physical books. Apple, on the other hand, sells content in order to sell hardware. The iTunes Store, the App Store and the brand-new iBooks Store exist so you'll buy iPods, iPhones and iPads, which is where Apple really makes money. iTunes revenue is just a bonus, though an ever fatter one with the explosion of the App Store.

You can see that the two companies place far different values on the content they sell. A more illustrative example: Amazon has been selling books at a loss—paying $15 for a hardcover bestseller, only to turn around and sell it for $10 on the Kindle. Apple would never, ever sell content at a loss. They make a decent bit of change, but apps and music are really just a way to fill up your iPhone.

http://gizmodo.com/5465323/why-and-h...-the-999-ebook