Originally Posted by Gatorguy
Umm, wouldn't that be a point for B&N?
You can't buy magazines from the Appstore on anything but an Apple device.
And I've never seen evidence anywhere that B&N was selling Nooks at a loss. Any source for that?
One of the links you posted said that. I don't remember which one right now. I've also read it a number of times elsewhere. These companies are interested in selling the books and magazines. The devices are just a way of doing that, which is why they have apps for iOS devices, as well as for the Mac, Windows machines, Android devices, etc. If they were so concerned about selling, and making a profit on the devices, they would not be doing that.
The fact that you can't buy iOS magazines and books anywhere else, if they're exclusive, is a point in Apple's favor as well. They get to sell tens of billions of dollars worth of iOS devices, where they make billions of dollars of profits, and these extra services help them to do that.
I'm not saying that the Nook and Kindle are bad. They are not, for what they do. But Apple isn't really interested in making a lot of money from the software, just the hardware. But Apple fullfills the first rule of business, which is to make a profit on every service and product, no matter how small. Apple has no loss leaders. So they try to make from what we read, about a 5% profit on iTunes and App Store sales. That keeps them in the black, but it's a pretty low profit margin for Apple, which made a 21.5% net margin last year.
Somehow, Amazon and B&N need to do better than that 5%. I don't know how they are doing it, but I hope they are.
Why would it matter? And yes, "it's tough to compare" when Apple won't announce how many subs or individual copies it's sold. Sales figures from the Appstore trickle out only in articles like these.
Apple doesn't have to announce it, the magazine publishers have been announcing it, as you very well know. You don't have to try to be clever and think you're throwing my words back at me, which you seem to think you're doing half the time, because you still get it wrong.
[I]But to repeat my earlier claim, so far B&N seems to have done a better job for the magazine guys than Apple based on the what I've found in my searches. You still haven't posted any evidence disputing any of this either, so I'm not sure on what basis you're questioning the articles other than you just don't like the conclusions.
If you read your own articles, and what I've said, you would stop bothering with that. It's only been during the past two weeks or so that the publishers and Apple have gotten together on this, and the results are just as good, if not better than what we're seeing elsewhere.
You've been on this site for a while, and you must have read the articles telling what is happening between Apple and the publishers. Don't pretend you haven't. I don't need to repeat what you've undoubtedly already read, but don't want to acknowledge.
I completely agree that sometime in the future things could change. The mobile market is so fluid that one misstep or masterstroke can change the whole game. The Appstore might someday become the best source for magazine publishers to get results. But that time doesn't appear to be now.
In essence, just because Apple may not currently be delivering the results that publisher's are looking for doesn't mean that no one else can. B&N's NookColor might be on the right track based on what the mag execs say.
This entire field is still really new, like where the Internet was in late 1995. It's way too early to know how things will shake out. Now that B&N has been bought, what will they be doing?
Apple will remain the big cheese. Books and magazine sales are almost of no importance to them, except as how they affect sales of their devices. As iPads will sell very well, with high profits, that's what Apple cares about. And as there will continue to be several book stores on those devices, iPad users have the best of all worlds, as long as book reading is just a part of what they want to do with a device. I'm convinced that Apple will be happy with book and magazine sales as long as people aren't driven to other devices instead.
If people just want a small, light, and cheap reader, even one in B/W, that sucks with anything using color, then these $100 plus readers will do fine. Go to color, and the price more than doubles. By then, you will start looking at the $499 iPad.