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Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Apple education event: Winners and losers

By | January 19, 2012, 8:15am PST

Summary: With Apple’s announcement just out the door, we take a look at some of those who benefit greatly from today’s event, and a look at some of those who might suffer as a result.

Apple today announced its next-generation iBooks 2 for the iPad, which will include Textbooks for students to access engaging, high-quality and interactive content. Apple also announced the iBooks Author application for Mac that allows teachers, educators, publishers and students alike to create e-books from an iWork-style interface.

Considering that the run-up to the announcement was fraught with concern for the publishing industry, who will win and lose out from today’s announcement? Will someone please think of the children?!

Winners:

Publishers: Who thought the publishing model was dead? By saddling up closer to the publishers, Apple gains a greater spread of material to sell. Though it wasn’t mentioned, Apple will presumably still take a 30 percent cut (or less; we are talking about the education sector after all).

The publishing industry also gets to stay in business. They want to move out into the digital market, Apple wants to take a cut — therefore both win.

Rich schools: Many schools are lucky enough to have iPad devices, through state-sponsored grants and to some extent, help from Apple directly. Also, schools with the socio-economic capability to build and fund expensive Mac labs will be able to benefit from iBooks Author to create the content they wish, and even sell it on the iBooks store to other students and educators - potentially to make a buck or five.

Losers:

Amazon: As the fierce opponent in the publishing race, Amazon has just taken a massive slap in the face from Apple. While Amazon buys books in wholesale, Apple takes an agency 30 percent cut, making the deal seemingly fair but more balanced in the favor of the author. While comparing each respective platform, it is not entirely clear who has the greater scope, but this adds more pressure on Amazon to compromise with its authors.

Windows users: There is no iBooks Author for Windows, cutting out a massive majority of schools and students in the process. Considering that Windows still commands at least 85 percent of the global market share, and the fact that PCs are still cheap and Mac OS X doesn’t run on PCs, it cuts out a hefty portion of Windows-running schools.

Poor schools: Today’s announcement makes the iPad so much more appealing. Over the long run, it will offer engaging, entertaining and up-to-date content. Communities, struggling with budget cuts, are trying to retain teachers and don’t have the funding to buy iPads. They will not be able to take advantage of its benefits. Some schools would be lucky to get one iPad per institution, let alone per class.

There’s no doubt that making textbooks for students is made easier by iBooks Author, but iPads will cost schools tens of thousands of dollars in the short term. Apple will need to consider subsidizing the iPad to poorer schools, or at least opening up the platform to iPod touch devices for a cheaper alternative.

Related:

Running rumours and speculation:

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Topics

Zack Whittaker, a criminologist who studied at the University of Kent, Canterbury, is a journalist, writer and broadcaster.

Disclosure

Zack Whittaker

I worked briefly with Microsoft UK in 2006 but no longer have any connection with the company. Regardless, I remain impartial and unbiased in my views.

I don't hold any stock or shares, investments or industrial secrets in any company, but have signed confidentiality agreements with a number of UK and U.S. organisations, whose names I am not at liberty to disclose.

I was involved with Kent Union, the University of Kent's student union, undertaking voluntary, non-salaried, elected positions between early 2009 and mid-2010.

No other company, body, government department, non-governmental organisation or third sector organisation employs me or pays me a salary in any capacity whatsoever.

As a freelance journalist, whenever expenses are given and taken by a company that is not CBS Interactive, these will be disclosed in each relevant post to ensure transparency.

I currently work with a UK law enforcement unit, but this is an entirely separate position which bears no connection to other work.

(Updated: 23rd October 2011)

Biography

Zack Whittaker

Zack Whittaker, criminologist who studied at the University of Kent, UK, is a journalist, writer and broadcaster.

After studying criminology at university, though still in his early-20's, he has already had a series unconventional work and voluntary positions. He has worked with researchers studying neurological illnesses like Tourette's syndrome (which he suffers from), has given lectures on the nature of disabilities in the public community, and occasionally ends up speaking on television and radio discussing the events of the day.

He first had academic work published at the age of 22, then still an undergraduate, and has been cited by a wide range of publications: from CNN, the Huffington Post, AllThingsDigital, The Atlantic Wire and CBS News.

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But do students get better marks as a result of the Apple eBook?
piblogger1 25th Jan
With Apple's launch of digital textbooks, will the 52% of all children under the age of 8 who have either an iPad, iPod or mobile device receive a better education? (http://www.blogtalkradio.com/jon-hansen/2012/01/24/higher-ed-this-month-with-denny-carter)
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Hopefully students in the long run
psquared007 19th Jan
The cost of hard copy text books is very high in many cases. Hopefully a robust new distribution platform can help lower that and improve the learning experience.
This idea you'd have to pay 500$ to Apple for an iPad and then 30% royalty fee for each book to get educated is pretty lame.
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Obviously you don't get it
GoPower 19th Jan
How many free text books have you read with your free PDF reader, duh!
@LBiege
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Ouch!
rhonin 19th Jan
@LBiege
That puts it well above the hardback textbook cost to the schools.
Now add that to parents.

Double ouch!
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RE: Apple education event: Winners and losers
The Danger is Microsoft 19th Jan
@LBiege $499 plus the cost of the e-books will work out less than the cost of text books over a 3 year period. Add in the advantages of a full featured tablet and it is more than obvious it works out to be a better, cheaper solution.

Your point was?
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RE: Apple education event: Winners and losers
mrxxxman Updated - 20th Jan
@LBiege This model will not work for a number of reasons. First is cost. The iPad itself is very expensive and what happens if it breaks or stops working? Can you easily share one iPad among several students? Would students be allowed to take them home? What about reading long textbooks on that type of display? What about wireless access? Will they need both 3G and wifi? Who pays for that? And what about simple logistical stuff like enough electrical outlets for everyone to be able to connect they iPad in class. If not there will also be students with iPads that don't have enough charge to last.

Second, because of all these reasons, the educational technology inequities will only increase between rich and poor schools too.
@The Danger is Microsoft FYI, the iPad is not a full featured tablet. What about on-going maintenance costs and technical support? You'll need an increased technical support staff to deal with implementation and maintenance. That's not going to happen especially in poor schools.
@GoPower You can get a number of free books through the Kindle Amazon app. Many classic books are available. In high school, many of those are assigned as textbooks in literature classes for example.
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So when I graduate, can I keep the book?
@Droid.Incredible YES... yours forver as a download like songs and videos.. no need to ever back up again.
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@Hasam1991 Can I sell the ebook to the next student (like in real life)?
@Droid.incredible
Probably not, but then since publishers release new editions every year anyway, nobody can use the old books much of the time anyway.
@Droid.Incredible
And more to the point can I sell it to someone who takes the same course next semester like I've always done with hard copy textbooks? Not likely possible in the "walled garden."
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RE: Apple education event: Winners and losers
Loverock Davidson- 19th Jan
Windows users: There is no iBooks Author for Windows, cutting out a massive majority of schools and students in the process.
Just the opposite. Without having iBooks for Microsoft Windows the author and Apple will lose out. You said it yourself, Microsoft Windows has 85% of the market share. That is 85% of the people Apple cannot sell books to.
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RE: Apple education event: Winners and losers
The Danger is Microsoft Updated - 19th Jan
@Loverock Davidson- Correction, that's a segment that cannot create the books to sell. Windows authors make no money from the iPad market. But they can still buy the best tablet on the market and reap the benefits of low cost e-books.

Face it, NO ONE wants Windows shills like you creating e-books for the iPad!
@The Danger is Microsoft Wake up and get off your ABM horse! Text books need to be an open standard that can run on Android/Windows 8 etc.

This should be an open standard!!!
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RE: Apple education event: Winners and losers
Loverock Davidson- 19th Jan
@The Danger is Microsoft
I don't see people willingly spending $700 on an iPad just to read some books especially while requiring a PC to do the rest of the work. Financially it doesn't make sense.
  • Flagged
@Loverock Davidson-

"especially while requiring a PC "

I hope you see the irony in your statement. Probably not.
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RE: Apple education event: Winners and losers
Loverock Davidson- 19th Jan
@msalzberg
I don't, mostly because there is no irony.
@msalzberg
LRD is correct.
The majority of households have difficulty providing one pc for the household.
iPads are secondary devices, especially in a case like this.

So yeah, $499 or less for a pc the household can use or $499 and up for a student iPad.

You need to be a bit realistic.
@The Danger is Microsoft
I didn't notice LRD saying anything about producing e-books for the iPad or any other device. Facts is facts though. Windows is a huge market and if Apple thinks it can control the textbook market through iBat and iPad then it makes me wonder what else they want to control...like the minds of their rabid loyalists????? They apparently already have you and quite a few others. I escaped a couple of years ago and use open source stuff as much as possible.
@Loverock Davidson- Sorry but every single student I know that's going to college wants a MAC...
@Hasam1991 That's because Win8 hasn't shipped yet! Once you see the Metro UI a grid of icons looks dated!! My Windows Phone makes you iPhone look like an antique!
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@jatbains

But Win8 developer preview is free and many have tried it. After seeing the Metro UI, I turned it off.

A grid of icons may be "simple" and not so much "pretty", but it gets the job done. You should be spending more time using applications, not staring at the desktop/launcher.
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@Hasam1991: And then they go out into the real world where 85% of the marketshare belongs to Windows, and they don't know how to use one. They want a Mac because their friends have one and it's "cool". It's not how the real world works, however. I used to have a sysadmin job at a company in the metro area that placed a lot of people who graduated from colleges in the area. They had no idea how to use Windows, but the company wasn't going to pay upwards of $1200 for a Mac with additional software licensing (we had a Microsoft Open Value Licensing agreement) when I could get Dells for half that (and most of the software we used wasn't Mac compatible anyway). Our graphics and photography team had Macs, but that was about it.
  • Flagged
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RE: Apple education event: Winners and losers
Loverock Davidson- 19th Jan
@Hasam1991
I haven't had anyone come up to me say they want a MAC.
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@Hasam1991

That couldn't be more wrong. Yes a lot of them do but not the majority. I work and have access to 22,000 students as I work for a University in the IT department. If you going to post how about some facts to base that statement on. Stop living in the shadow of the fruit my friend its a nice sunny world out there.
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@Loverock Davidson-

Just like how Apple lost out because you need a Mac/OSX to develop iOS applications.

oh wait.
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RE: Apple education event: Winners and losers
Loverock Davidson- 19th Jan
@tk_77
Yep
  • Flagged
@Loverock Davidson- Windows users make up the majority of iPad owners....and they will be buying these books created on a Mac in the millions.

Windows users lose....big time. These new features will sell more iPads and Mac's.
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RE: Apple education event: Winners and losers
Loverock Davidson- 19th Jan
@JeveSobs
I don't see this having any affect on iPad and Mac sales. Windows users already own their laptop for school, they aren't going to drop $700 on a less functional device like an iPad or another $1000 on a Mac.
  • Flagged
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@Loverock Davidson-

1. Apple's lowest iPad is $499...where you get $700 I have no clue.
2. Apple will hit a home run with this as Windows users (like me) have iPads
3. Microsoft will lose as they still have nothing to offer, and rumors are circulating that their Windows 8 tablets will have a $700 starting price point...$200 over the lowest capacity iPad...

The only losers I see here are Microsoft and you. Ballmer blew it again....what's that...four times now?
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RE: Apple education event: Winners and losers
Loverock Davidson- 19th Jan
@SamWilkinson
1. I see iPads listed on Apple's site for $699
2. Not as many iPads out there as you think
3. Microsoft has nothing to lose.

Ballmer blew what? 4 times? How do you figure?
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@LoveRock Davidson

1. You're clueless, go right to Apple's site and click on iPad on the top row and it says in BLACK AND WHITE "Starting at $499"
2. Yes, there are as many iPads out there as I think, numbers don't lie, which is something Microsoft can't put up when it comes to sales figures for things like Zune, Zune HD, and WP7
3. Microsoft has everything to lose, Windows 8 on a tablet priced starting at $700 will be a joke compared to iPad at $499 and Android models running the same or cheaper, you're just another delusional Windows shill.
4. Ballmer laughed at iPod..failed...Ballmer laughed at iPhone..failed...Ballmer laughed at iPad...failing as of this date...and now Apple is in textbooks....

What more evidence do you need to understand that your precious Microsoft is not going to nor has a prayer of even dominating anything except the OS market and video games...their CEO has no vision and has held up the company for ten years.

Nothing will ever convince you of the truth, so throwing facts in your face is a lesson in futility.
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@Loverock Davidson

Also Apple sold over 30 million iPads in 2011....did they make these numbers up?

I'm sorry it must suck supporting a company that has lost its net worth to Apple...does it bother you knowing Apple is worth more than Microsoft...and with iPad 3 to be announced in less than a month it's going to hurt even more Lovey...

Yet you'll still be in denial...just like you denying the iPhone exists too....and Microsoft still struggles to hold any kind of percentage in that market....
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Size
rhonin 19th Jan
@SamWilkinson
Based on the potential size of the textbooks, a baseline 16gb iPad won't cut it. A larger memory device will be needed.
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@rhonin According to the iBook library some of the texts are roughly 800MB/1GB in size...but even so if you have a full college load of 4 courses or even 5 that amounts to 5GB used on the iPad, enough room for your books and at the end of the course you just delete it.

The point I was making that Loverock Clueless said the lowest price is $699 for an iPad and once again he is WRONG.
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Regarding your Size comment.
kenosha77a 19th Jan
@rhonin

Seriously? I thought you knew how computer OS systems worked. The whole program app does not need to be loaded into RAM for the app to function.

If your size comment referred to the amount of iPad SSD storage capability, Sam answered your question about deleting and reinstalling the textbook from the cloud as needed.
@SamWilkinson
1. Apple's lowest iPad is $499...where you get $700 I have no clue.

LRD probably looked at that $499 iPad and compared it to what you can buy elsewhere and get more functionality, storage, etc. For $579 you can get a 64GB Lenovo Thinkpad tablet. 64GB iPad2 is $699. And the Lenovo even has a SIM slot.
Your posts get lamer by the day.
@Loverock Davidson-
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RE: Apple education event: Winners and losers
Loverock Davidson- 19th Jan
@GoPower
Then don't read them. Skip right over my posts if you don't like them, otherwise join my fanclub and be a follower.
  • Flagged
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@GoPower Don't bother...he's losing and he knows it...Apple has taken the market from Microsoft in terms of music, phones, and tablets....laptop sales are up too over Microsoft as well...just a matter of time before they own that too, then all Lovey has is the desktop and video games.
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@Loverock Davidson what fanclub? The technologically clueless and useless club?
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@Loverock Davidson-

The text books work on tablets, not PCs. What's Windows tablet marketshare?
@Loverock Davidson-
That's the part of this whole thing that is most puzzling to me! Ed Bott had an article on this in which he attacks the EULA for iBAT. What I get from it is that if you produce a textbook in iBAT and because it's rejected by Apple or because you have second thoughts about releasing it through Apple, you then can export it to text or pdf and then reformat it. But if that's true why not just produce it in a widely available format to begin with? If the textbook publishers won't cooperate they'd be cutting of their noses to spite their faces.
Good old PDF works for me. There a good tools for annotating, highlighting, etc. for PDF that aren't part of the Adobe family, some free, some at low cost.
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Publishers: Who thought the publishing model was dead? By saddling up closer to the publishers, Apple gains a greater spread of material to sell. Though it wasn???t mentioned, Apple will presumably still take a 30 percent cut (or less; we are talking about the education sector after all).

The publishing industry also gets to stay in business. They want to move out into the digital market, Apple wants to take a cut ??? therefore both win.



Umm, no, that is YOUR opinion. Publishers / Authors have a very different one.
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I see a win for Apple and its partners but nobody else. With so many schools facing deficits. How will they invest in hardware and ebooks? Will books on a reader last as long as hard cover books? Let's not be dumb here, kids drop and break things all the time. Do you really think iPads will hold up as long as hard cover books? What I see happening is some school districts will simply switch to ebooks as an option but force parents to flip the bill on hardware and the ebooks. Maybe some schools will be lucky enough to get grants for purchasing iPad. But in most cases those do not cover costs to provide every student with a iPad which we are really talking about here. I'd say Apple is going to make money from this obviously, but is it good for schools? I think that is a big question mark.
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RE: Apple education event: Winners and losers
The Danger is Microsoft Updated - 19th Jan
@jscott418 - Well, I know the cost of books for college students. The price of an iPad ($499)! So the iPad pays for itself and offers the flexibility and whole host of features books don't have over the course of 3 years. College students are not 'kids' that drop their kit. Perhaps you are thinking grade school? I doubt very much grade schools would move to iPads but high schools, colleges and vocational schools surely would!
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RE: Apple education event: Winners and losers
jatbains Updated - 19th Jan
@The Danger is Microsoft This is better geared towards Universities and Colleges where students buy their own books. In High school and Elementary schools are strapped for cash!!
I have to disagree about "poor schools." Poor-school administrators (and the legislators who hire them) will be all over this. iPads are cheaper than teachers, easier to fix than broken families, and they make people think you're innovating.
With Apple's launch of digital textbooks, will the 52% of all children under the age of 8 who have either an iPad, iPod or mobile device receive a better education? (http://www.blogtalkradio.com/jon-hansen/2012/01/24/higher-ed-this-month-with-denny-carter)

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