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iBooks to boost Apple's iTunes into a $13 billion business by 2013

post #1 of 63
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Apple's ubiquitous iTunes Store and its associated services are forecast to generate a staggering $13 billion in revenues during the company's fiscal 2013, growing at an expected rate of nearly 40% over the next three years as publishers trend towards its iBook format.

That's according to Global Equities Research analyst Trip Chowdhry, who singled out iBooks as one of the primary growth catalysts behind the Cupertino-based company's digital download business, explaining that his research shows that book publishers themselves have begun to prefer AppleÂs iBook ÂePub format over that of AmazonÂs market-leading Kindle format.Â*

He further suggests that the quality of the iBooks app offered by Apple far exceeds that of the Kindle app supplied by Amazon, which may influence where books are being bought. "[R]esearch with students indicates that they would rather have books on iPad vs. Kindle," he said, adding that in terms of usability on a scale of 10, the iBook app is "probably 8 and Kindle application on iPad is probably [a] 5."

The Kindle application "lacks the finish and crispness of an iBook," he said.

Alongside the recently announced milestone of 100,000 iPad apps on the AppStore, statistics show the typical number of apps found on the average user's iPad has at least tripled in the past six months, rising from fifteen to more than forty-five.Â*

As such, Chowdhry has increased his revenue projections for Apple's recently ended fiscal third quarter by taking into account the rapid rise of AppleÂs iBook and App Store businesses, the company's presumably strong ÂBack To School sales and its market share successes in the enterprise.

He's now forecasting revenues of $24.80 billion to go along with earnings of $5.81 a share, showing a year-over-year increase of 58 percent and 65 percent, respectively, for the three-month period ended June. On average, analysts polled by Thomson Reuters expect Apple to earn $5.69 per share on sales of $24.67 billion.



For the entire fiscal year of 2011, Chowdhry estimates call for revenues of $104.08 billion and earnings of $25.09, showcasing a 59.8 percent and 65.6 percent increase from last year. This compares to Street consensus estimates of $24.82 per share on revenues of $103.52 billion.

iTunes was released 10 years ago on Jan. 9, with the iTunes Store being launched alongside Version 4. Since then, over 10 billion tracks have been downloaded, making it the most successful music store in history.
post #2 of 63
Once Apple adds an iBooks app for mac I'll actually take it seriously and buy books from the iBooks store
post #3 of 63
it's the pricing. Apple is giving publishers what they have always had, control over their pricing. This is annoying as a consumer sometimes, when a book is 2 or 3 bucks more than on kindle. It's annoying on iTunes too at times - especially with old TV shows like Star trek and Buffy.

But Apple seems to have demonstrated with the music market that eventually it can win the content owners over to sensible pricing once they see the volume. So here's hoping.
post #4 of 63
I certainly prefer iBooks over Kindle, and I'm glad to read that publishers may be flocking to it as I oft find the selection to be weak.

Quote:
Originally Posted by blackbook View Post

Once Apple adds an iBooks app for mac I'll actually take it seriously and buy books from the iBooks store

That and iMessage for Mac seem like "no brainers."
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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post #5 of 63
What was it Steve Jobs said about reading, again? Not that he or anybody at Apple cares.
post #6 of 63
Quote:
Originally Posted by blackbook View Post

Once Apple adds an iBooks app for mac I'll actually take it seriously and buy books from the iBooks store

I read on my iPhone using iBooks. Its great. And just to branch off a little - I don't know if people use the Safari 'reader' but I have grown to love it.
post #7 of 63
Quote:
Originally Posted by paxman View Post

I read on my iPhone using iBooks. Its great. And just to branch off a little - I don't know if people use the Safari 'reader' but I have grown to love it.

Ugh - I hate iBooks on the iPhone. No orientation lock and a distinctly sticky page turning animation. Maybe on the iPhone5 it will be better.
post #8 of 63
Quote:
his research shows that book publishers themselves have begun to prefer Apples iBook ePub format over that of Amazons market-leading Kindle format

Curious wording when the original says that more now there are more publisher tan before on iBook but no that they prefer over Amazon.

It's not problem of format because ePub is the format of Nook and I think the selection of books of B&N is greater than Apple selection.
post #9 of 63
Quote:
Originally Posted by paxman View Post

What was it Steve Jobs said about reading, again? Not that he or anybody at Apple cares.

Did you read that somewhere?
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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post #10 of 63
Quote:
Originally Posted by cloudgazer View Post

it's the pricing. Apple is giving publishers what they have always had, control over their pricing. This is annoying as a consumer sometimes, when a book is 2 or 3 bucks more than on kindle. It's annoying on iTunes too at times - especially with old TV shows like Star trek and Buffy.

But Apple seems to have demonstrated with the music market that eventually it can win the content owners over to sensible pricing once they see the volume. So here's hoping.

I don't believe that Amazon could have kept the pricing model they had. Every article about it, from people close to the situation, said that Amazon was paying publishers more than they were charging consumers. That's a model that will fail.

What Amazon was doing was to attempt to build up a service that monopolized the industry will its lower selling prices, and then to bring the hammer down on publishers with demands that they lower their prices to Amazon. Likely, they would have also raised prices to consumers as well.

All that Apple did was to rectify this pricing mismatch. We all want cheaper books, as we want cheaper everything, something that's made China the premiere manufacturing country. But we can't always get what we want, because it has to work for all sides. If one part of the triangle of publishers, sellers and buyers is too far out of wack, the entire thing falls apart.

I think we will see slightly falling e-book prices over time, and some are pretty cheap now. I don't blame publishers for trying to make their money back early on, as that's what all companies do
post #11 of 63
Quote:
Originally Posted by solipsism View Post

Did you read that somewhere?

Remember when he said that people don't read books anymore? I think he said that most people only read one book a year or so.

But smart people change their minds when the evidence shows them otherwise. I would imagine that when the Kindle's sales rose to a certain point, even though Amazon has, so far, refused to give sales numbers, Apple decided that it was a worthy area to get involved in.
post #12 of 63
Quote:
Originally Posted by melgross View Post

Remember when he said that people don't read books anymore? I think he said that most people only read one book a year or so.

But smart people change their minds when the evidence shows them otherwise. I would imagine that when the Kindle's sales rose to a certain point, even though Amazon has, so far, refused to give sales numbers, Apple decided that it was a worthy area to get involved in.

Smart people also pick up on sarcasm.
post #13 of 63
Quote:
Originally Posted by cloudgazer View Post

it's the pricing. Apple is giving publishers what they have always had, control over their pricing. This is annoying as a consumer sometimes, when a book is 2 or 3 bucks more than on kindle. It's annoying on iTunes too at times - especially with old TV shows like Star trek and Buffy.

But Apple seems to have demonstrated with the music market that eventually it can win the content owners over to sensible pricing once they see the volume. So here's hoping.

But didn't Apple control music pricing on iTunes from day 1? With books, they lack control and are less likely to gain leverage once you don't have it.
post #14 of 63
iBookstore is creating a new renaissance in independent authorship.

The Publishing and it's adjoining literary agency industry either gets on board or will see much of their control eroded by 2013.
post #15 of 63
So, yeah, that link in the Kindle app is eventually coming down.
post #16 of 63
Quote:
Originally Posted by cloudgazer View Post

Ugh - I hate iBooks on the iPhone. No orientation lock and a distinctly sticky page turning animation. Maybe on the iPhone5 it will be better.

Orientation lock works just fine on my iPhone4. And I have experienced no "sticky pages" except when I have a jam sandwich while reading.
post #17 of 63
Quote:
Originally Posted by stelligent View Post

Smart people also pick up on sarcasm.

As if you would know.
post #18 of 63
I began reading a trilogy a while ago. I had bought the first two books in paperback and when it came time to get number three, I had gotten an iPad 2 by that time, so I decided to get the last book electronically and read it on my iPad as an experiment.

I'm now done with that last book and my conclusion is that I don't really ever see myself buying a real paper book ever again. It makes no sense. I like to set the color to sepia and I turn the brightness down, and it comes pretty close to the feel of reading on real paper in my opinion. I don't read outside, so that's not really a concern of mine. I'm going on vacation soon, and my iPad is already loaded up with a few books to keep me busy if the weather is lousy.
post #19 of 63
Quote:
Originally Posted by Apple ][ View Post

I began reading a trilogy a while ago. I had bought the first two books in paperback and when it came time to get number three, I had gotten an iPad 2 by that time, so I decided to get the last book electronically and read it on my iPad as an experiment.

I'm now done with that last book and my conclusion is that I don't really ever see myself buying a real paper book ever again. It makes no sense. I like to set the color to sepia and I turn the brightness down, and it comes pretty close to the feel of reading on real paper in my opinion. I don't read outside, so that's not really a concern of mine. I'm going on vacation soon, and my iPad is already loaded up with a few books to keep me busy if the weather is lousy.

I'm the same way about it. I've also not renewed subs to magazines when they became available from Zinio. I'm much happier without all that extra paper on many shelves.
post #20 of 63
good going apple!
post #21 of 63
Quote:
Originally Posted by solipsism View Post

I certainly prefer iBooks over Kindle, and I'm glad to read that publishers may be flocking to it as I oft find the selection to be weak.



That and iMessage for Mac seem like "no brainers."

Agreed.
post #22 of 63
Quote:
Originally Posted by blackbook View Post

Once Apple adds an iBooks app for mac I'll actually take it seriously and buy books from the iBooks store

Yep. Then I can unhook my 27" iMac from its stand, tape a multi-touch trackpad on the bottom, and I just made myself the world's biggest iPad that I can enjoy from the comfort of my sofa.
post #23 of 63
Quote:
Originally Posted by melgross View Post

Remember when he said that people don't read books anymore? I think he said that most people only read one book a year or so.

But smart people change their minds when the evidence shows them otherwise. I would imagine that when the Kindle's sales rose to a certain point, even though Amazon has, so far, refused to give sales numbers, Apple decided that it was a worthy area to get involved in.

I hate to say it, but I hate using physical books because it meant I had to carry them around in one way or another, so it discouraged me from reading. Sad but true.

My iPad changed all that. I have probably read more in the last couple months since getting my iPad than I have in the past 4-5 years. It's just convenient to carry that around.
post #24 of 63
Quote:
Originally Posted by sflocal View Post

Yep. Then I can unhook my 27" iMac from its stand, tape a multi-touch trackpad on the bottom, and I just made myself the world's biggest iPad that I can enjoy from the comfort of my sofa.

I don't know about iBooks, but that's exactly how I buy my apps for the iPad. iTunes on OSX is better for app shopping than the built in app on the iPad, so I usually buy my iPad apps looking at my 27" monitor and using a multi touch trackpad.
post #25 of 63
Quote:
Originally Posted by Apple ][ View Post

I don't know about iBooks, but that's exactly how I buy my apps for the iPad. iTunes on OSX is better for app shopping than the built in app on the iPad, so I usually buy my iPad apps looking at my 27" monitor and using a multi touch trackpad.

Well then.. I presume you're maybe one room away to haul that iMac on the sofa right?
post #26 of 63
Quote:
Originally Posted by sflocal View Post

Well then.. I presume you're maybe one room away to haul that iMac on the sofa right?

It's not exactly an iMac. It's just an external 27" monitor that I use hooked up to my laptop at the moment. I do have an older iMac, but I don't really use that anymore.
post #27 of 63
So these idiots can tell me how much money Apple will earn two years from now, but weren't able to tell me when the white iPhone would come out.

I'd like to know the jackasses that are making millions shorting Apple stock based on this type of virtually imaginary information.
post #28 of 63
Quote:
Originally Posted by melgross View Post

As if you would know.

I know you answered a sarcastic remark with a serious soliloquy. It's there for all to see. Lolololololo
post #29 of 63
Quote:
Originally Posted by blackbook View Post

Once Apple adds an iBooks app for mac I'll actually take it seriously and buy books from the iBooks store

I agree. It absolutely sucks not being able to sync your iBooks to the Mac. Wake up Apple!
post #30 of 63
Love ibooks but Kindle+whispersync is a better experience for read books on multiple devices.
post #31 of 63
Ditto. Not a buyer until Mac readability happens as it does in Google eBooks & Kindle books. Why pay more and get less? Apple has head in cloud on this one.


[NQUOTE=blackbook;1896126]Once Apple adds an iBooks app for mac I'll actually take it seriously and buy books from the iBooks store[/QUOTE]
post #32 of 63
Quote:
Originally Posted by stelligent View Post

Smart people also pick up on sarcasm.

I saw it more as irony than sarcasm... but that's another debate.

Go iBooks!
Hmmmmmm...
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Hmmmmmm...
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post #33 of 63
How long have we heard the iTunes Store was just a break even model to help sales of other products? We can now add this as yet another major profit center for Apple.
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
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From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
post #34 of 63
"...his research shows that book publishers themselves have begun to prefer Apple’s iBook ‘ePub’ format over that of Amazon’s market-leading Kindle format.".

This statement is pure sophistry. Both Apple and Amazon pay the publisher the same amount for books. The "format" is irrelevant. The author's goal seems to be to move markets not relate relevant truths. FWIW, I suspect most of the posters herewith have never used a Kindle.
post #35 of 63
Quote:
Originally Posted by stelligent View Post

Smart people also pick up on sarcasm.

Truly smart people (not to mention successful comedians) know that sarcasm is wit for the witless.
post #36 of 63
Quote:
Originally Posted by cloudgazer View Post

Ugh - I hate iBooks on the iPhone. No orientation lock and a distinctly sticky page turning animation. Maybe on the iPhone5 it will be better.

What the hell are you talking about. iBooks has orientation lock on an iPhone.

I think Preview will take over on the Mac rather than a separate app unless Preview disappears and becomes iBooks. Either way it makes sense rather than having another app.

iBooks Store would make even more if it was rolled out to more countries. Still can't get anything more than the free stuff which is limiting.

I want computer books and Tom Clancy novels but I can't get them unless I lock into the Amazon Kindle and it's okay but it sucks compared to iBooks experience.
post #37 of 63
Quote:
Originally Posted by Mister Snitch View Post

Truly smart people (not to mention successful comedians) know that sarcasm is wit for the witless.

Actually research shows that to understand sarcasm you have to be very intelligent so that really makes your comment false... but then I guess you'd know that if you were smart.
post #38 of 63
Quote:
Originally Posted by blackbook View Post

Once Apple adds an iBooks app for mac I'll actually take it seriously and buy books from the iBooks store

But first we'll need to be able to actually BUY books from the international store. Sadly it's just for US users. International users only have access to old, free Project Gutenberg books. So for me, the iBook store is just a gimmick people keep talking about... Just like iTunes movies.
post #39 of 63
Quote:
Originally Posted by palegolas View Post

But first we'll need to be able to actually BUY books from the international store. Sadly it's just for US users. International users only have access to old, free Project Gutenberg books. So for me, the iBook store is just a gimmick people keep talking about... Just like iTunes movies.

Huh? Where are you located? Here in Australia we have all the major publishers in the iBookstore. Sadly not all of the publishers books are there though, like I couldn't find 'The Girl with the Dragon Tattoo' but other popular stuff like the Twilight novels are all in there.

Same as the iTunes movie store.
Owen stop reading my posts.
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Owen stop reading my posts.
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post #40 of 63
I cannot buy iBooks in the Netherlands or most other European countries.

J.
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