Everytime a landlord raises my rent 10% I ask him, "What do I get for this extra 10%? How much will it cost you if I move out?" Will this 30% give anything to Apple's developers, or is Apple just realizing they now have the clout to bully their ecosystem into submission like Microsoft did?
Apple sets deadline for Amazon's Kindle app to change - They want 30% per book
61–70 of 107 posts
Re: Apple sets deadline for Amazon's Kindle app to change - They want 30% per book
#62Earlier quoted context omitted.
That would be the core issue - I'm not sure Apple would even allow a "Buy Books" button that jumps to their website from within the Kindle app. At most, maybe a "Visit Amazon Website" button that goes to the home page, then after Apple approves the app have their site detect iPad users linked from the app, jump them directly to the Kindle bookstore. That's the best end-run I could come up with.
Kindle books are purchased through a WebKit view of Amazon.com in the iPad app now. That's what Apple is saying can't continue and that there needs to be In App Purchasing support. While it has been implied, I haven't heard specifically that they require the pricing to be the same (so you can't charge more for In App purchases to cover the 30% Apple VAT).
I'm not seeing this in the Kindle app on my iPad. Clicking on "Shop in Kindle Store" kicks you out of the app and into MobileSafari.
Re: Apple sets deadline for Amazon's Kindle app to change - They want 30% per book
#63First off, if you trace the article to its source, you'll end up on a WSJ article that says something slightly different: http://online.wsj.com/article/SB1000142405274870477560457612... As far as we know, Apple has not directly set a deadline for Amazon. In fact, there's no knew information other than the date: meaning there's still a lot of questions about the subscription rates and the actual requirements Apple wil…
I think Amazon could resolve this really easily by doing a cross marketing deal with Apple. But at least Apple is only taking %30. Amazon has completely excluded Apple from selling books via the iBookstore app on the kindle. In fact, you can't even read iBookstore books on the kindle because Amazon doesn't allow Apple to produce an app for the kindle.
I think since iBoos appeared, and publishers demanded an agency model from Amazon, too, Amazon is only get 30% from that $10 price. This means if Apple takes 30% from it, Amazon will have zero left.
Amazon will either quit the AppStore in protest, and hope consumer protest will make Apple change their minds, or they'll start charging $14-15 for books instead to cover the 30% cut.
Re: Apple sets deadline for Amazon's Kindle app to change - They want 30% per book
#64If true, I think the market will make some obvious adjustments. In-app content will be vastly (%30?) more expensive than "out-of-app" purchases. Apple will counter with more reasonable rates. The end result will mean nothing has been lost and that app content will be more accessible. As with similar Apple initiatives (music, apps, etc.), users may find themselves more eager to pay for content at the end of the day.
Apple are canny about their relationships with content owners - I'm hesitant to believe that they'd attempt a flagrant "Apple tax". Many of their most important products - the iPhone comes to mind - have a relatively small slice of their market. In this atmosphere, it would be untenable to risk losing important content sources with exorbitant fees.
Re: Apple sets deadline for Amazon's Kindle app to change - They want 30% per book
#65is it me or is 30 a robbery? I feel like Im watching goodfellas and any italian mafia movie where the mob asks for unfair piece of the business so they can protect you from unwanted guests...
Re: Apple sets deadline for Amazon's Kindle app to change - They want 30% per book
#66So, what do HN recommend that Amazon do now? Or at least expect them to do. * Leave the app as-is. (With what specific motive?) * Jack up the prices. (Perhaps they'll include a notification when the user is on the relevant purchase page.) * Leave the prices as-is and take the 30% hit. * Let Apple kill the app.
I haven't fully analyzed it but my gut instinct would be to raise the prices by 30%, then explicitly state to the end user that the 30% surcharge is because of Apple. This way its transparent to the end user, and it could put some pressure on Apple to lower its fees.
Initially I thought this, but Amazon has to pass on 70% of the sale to the publisher, and with Apple taking 30%, regardless of how much the ebook was sold for, Amazon is left with nothing.
Re: Apple sets deadline for Amazon's Kindle app to change - They want 30% per book
#67I still think this whole thing only applies to apps that let you shop/browse internally and then whisk you away to Safari to coplete the payment. And apple's reason for objecting to this is to protect users from fraudulent payment gateways. Just one customer who had their credit card ripped off after making a 'purchase on an iPhone app' would be extremely damaging to the reputation of the whole iOS ecosystem.
If that was the case, they could require Amazon to use their inapp purchasing platform without taking a 30% cut.
It seems pretty clear to me that 30% of all Amazon's iOS business would be a nice addition to anyone's bottom line, and Apple feel like they're in a position to take it.
Re: Apple sets deadline for Amazon's Kindle app to change - They want 30% per book
#68Earlier quoted context omitted.
There's nothing preventing Apple from signing up to be a Kindle developer and using the KDK to develop an iBooks app for the Kindle. http://kdk.amazon.com/ I'd like you to point out any evidence that Amazon has excluded or rejected Apple's application, because I've never heard anything of the sort.
"active content must meet all Amazon technical requirements, not be a generic reader, and not contain malicious code" Depends on how they define a "generic reader" doesn't it?
Does not still prevent anyone from selling books.
Re: Apple sets deadline for Amazon's Kindle app to change - They want 30% per book
#69What if Apple started demanding 30% of all sales transacted on every device they produce? What makes an iPhone so different from a MacBook?
That is the problem here. The Kindle is not a device specific thing, it is hardware and mostly the software that is available on all devices. I do not own a Kindle, I own many Kindle books.
So if I buy one on my PC a while back, then go to my Kindle app on the iOS device and then Amazon has to hide it because it wasn't bought there?
This is actually Apple, which I own many products, being anti-competitive on allowing other bookstores at all besides iBooks.
This will force possibly the market to go more PDF and away from DRM, maybe a good direction in the end. Amazon should switch to PDFs. Then you can load those up in iBooks.
Re: Apple sets deadline for Amazon's Kindle app to change - They want 30% per book
#70So, what do HN recommend that Amazon do now? Or at least expect them to do. * Leave the app as-is. (With what specific motive?) * Jack up the prices. (Perhaps they'll include a notification when the user is on the relevant purchase page.) * Leave the prices as-is and take the 30% hit. * Let Apple kill the app.
Leave it as-is. I'm not quite sure how the power balance in the iPad ecosystem is, but if Apple needs Amazon more than Amazon needs Apple, they may be able to force a deal. Especially if Amazon communicates with its users about why the app is threatened if Apple is killing it.
Also, though, the cost isn't just the Apple surcharge. It's the cost of changing their sales and distribution system to support sales through third-parties. Basically, Apple is asking Amazon to change the way they do business. That's not a very good deal for Amazon.