Originally Posted by yuusharo
I can see three outcomes to this ploy by Cupertino:
One, everyone leaves the app store and customers are left angry and outraged - not at Apple, but at those companies for not being on their shiny new toys anymore. Customers lose, content creators and publishers lose, Apple wins.
There will be plenty of press releases by the publishers, Google, other tablet manufacturers and every single tech site, or technical part of every single newspaper in the world blaming Apple if Kindle leaves ( which it will). Customers will blame Apple and go elsewhere.
Amazon and Android will point to the 2 million books, as opposed to Apple's 200,000. Heck if Amazon wanted to play dirty it could ban publishers ( its a shop, not a publisher) who are also in iBooks. Or price them out of the market. Thats an anti-trust violation, but not nearly as bad as Apple's . If Apple is playing like a bully until the government intervenes - well 2(00) can play at that game. This is Apple against the world.
Two, everyone stays on iOS and either raises the price of all sales and subscriptions to cover Apple's huge percentage, or remains where they are and takes a loss. Customers lose on higher prices, content creators and publishers lose with revenue loss, Apple wins in either case.
Thats not going to happen. Publishers have to have the same price. The iPad is not that important to Amazon that they will raise their prices by 43% across the board.
Three, Apple announces new subscription plans for both iTunes music and video, effectively competing against all forms of digital content (books, music, TV and movies) in any purchase model (individual, rental or subscription), and negates the need of even having Netflix, Kindle or Hulu on the platform in the first place. Consumers lose on choice, content creators and publishers lose almost an entire market, and, surprise surprise, Apple wins yet again.
They already have done that - the 43% markup applies to Hulu, Kindle and Netflix ( and the company I worked for until they canned a project).
So no matter how you look at it, Apple wins. Period. That's why this is such a brilliant business move for them. They will always come out on top, no matter how aggressively greedy they become.
Competition, save us!!!
They win until everybody abandons the platform because it has bog all books compared to the Android, and far less choice of content providers. Even if the iPad comes in good this year, it wont last.
This is hardball nonsense from Apple at a time when they need to be more agressive about selling hardware and not give a toss about content providers making them rich by adding value to their platform..