ie8 fix

Apple enforcing eReader restrictions, Google Books no longer available to iOS

By | July 25, 2011, 4:54am PDT

Summary: Apple created a stir early this year by changing the rules for in-app purchases that in effect made eReader apps share the wealth with Apple. The rules are now in effect and already impacting competition.

Updated: Apple created a stir early this year by changing the rules for in-app purchases that in effect made eReader apps unable to deal directly with competing bookstores to bypass Apple’s 30 percent tax on such purchases. Booksellers were quick to point out that ebooks don’t have that kind of margin available to give to Apple, and that changes would have to be made to get around it. The companies behind eReader apps for the iPad and iPhone must have been told the new rules were finally to be enforced, and major changes were noticed this weekend by The Digital Reader that include the removal of Google Books from the iTunes App Store.

There is no official word from Google why the app has been removed, but TDR also noticed that most other eReader apps have been altered to deal with Apple’s charges. Nook Kids no longer has a link in the app to buy books from the Barnes & Noble bookstore. This will likely by followed with the main Nook eReader app getting updated soon. The Kobo and Borders apps have already been modified to handle Apple’s rules. What remains to be seen is how Amazon handles the Kindle app, which hasn’t been modified to date.

These apps no longer allow users to set up new ebook accounts for these stores within the apps, turning them into readers for existing store customers only. This is the way companies are dealing with the in-app 30 percent rule from Apple.

Update: Since publication Amazon has released an updated Kindle app for iOS that “removes the Kindle Store button from the app”. The new Kindle app for iOS adds support for magazines and newspapers. Amazon points out that it is still possible to buy Kindle content through Safari or any browser. I guess developers considering moving to HTML5 and dropping the app form entirely may have better reason now.

[via The Digital Reader]

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James Kendrick has been using mobile devices since they weighed 30 pounds, and has been sharing his insights on mobile technology for almost that long. Prior to joining ZDNet, James was the Founding Editor of jkOnTheRun, a CNET Top 100 Tech Blog that was acquired by GigaOM in 2008 and is now part of that prestigious tech network. James' writing has appeared in many print publications: Smartphone and Pocket PC Magazine, Information Week and Laptop Magazine to name a few. James' coverage of the mobile technology sector has regularly appeared in the New York Times, Salon.com and CNN/ Fortune online. Not just a writer, James has filmed numerous video reviews and how-tos that have garnered well over a million viewers. He has appeared on local news segments and been interviewed by the Associated Press on mobile technology topics. Additionally, James has been podcasting about mobile technology for years.

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The answer....LET 'EM KNOW
erapka@... 29th Jul
Apple, Google+, Facebook.... all these wanna-be monoliths are continually implementing monopolistic practices...and it's up to us the people to put out a loud enough hue-and-cry to bring them to their senses. Let's face it, they're all in it for the bucks...and will continue to try to quash the competition and re-position themselves. But each time, when WE protest loudly and in unison...they seem to back off. Google+ just adjusted its TOS on names, FB revised its security mechanisms...and I'm sure if enough people express that they're pissed off, Apple will get the message. (Or more accurately, Jobs will...he seems to be exhibiting a lot of very peculiar idiosyncracies re what he wants on desktops and in istores these days, probably owing to him getting up in years when old codgers become imcreasingly intractible.)
So let's keep those cards & letters (or electrons) coming, folks...
EAR
Sadly it appears that Apple is choosing 30% of nothing, as their actions have caused ebook-sellers to simply remove the functionality, rather than a fair percentage of a rapidly shrinking margin.

The ebooks have razor-thin margins to begin with, and buyers rightfully expect electronic content for less than traditional books.

This isn't a printed-copy here, and the 'real value' of it -- especially on an Apple device, which is only one of a handful of readers -- doesn't support such a high tithe just for access to their distribution channel.

It seems Apple wants me to 'pay more and get less'. I won't. Whether the other ebook marketplace consumers agree with me or not, only time will tell. However, I for one, will take my business elsewhere and buy more while paying less.

Regards,
Jon
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@JonathonDoe Since it will be a lot less confusing to use for dedicated eBook desiring customers.
@JonathonDoe where are the antitrust busters?
where are the consumer's advocates?
@Linux Geek There are no anti-trust busters anymore .... went away once the Dem party became Rep lite. Perhaps class action against Apple might work but it will take years and years and years.
@JonathonDoe This evil move virtually guaranteed that I will NEVER buy an eBook from Apple. In fact, I may extend this to future music purchases, as well. I will go out of my way to buy from iTunes competitors from now on. I hope others do the same to show their displeasure with Apple. It is ridiculous for Apple to expect Amazon or Google to give them a percentage of book sales. The books aren't being sold through iTunes or being enhanced in any way by Apple - what did Apple do to earn the money on those book purchases?
@BillDem

What did Apple do? They opened their doors and allowed the competition to sell their competing books in the App Store. They're hosting their competitors book stores, giving them easy access to the 230 million book loving iOS users out there.

Would a Amazon allow Apple to set up shop on their website and sell iBooks to Amazon's customers, freely (redirecting them back to iTunes)? No they would charge Apple a fee to do so, no?
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@dave95 - the thing is, Apple changed the rules mid-way. Apple decided to set up a book shop AFTER all the others had developed a market. Then, to make sure their product was successful, they hamstrung all the other applications to make sure they could not sell books in app profitably. Apple WANTED Amazon, B&N, etc BEFORE they had their own bookstore, now that they do, they are changing the rules.
+1 isn't enough.
+1000
@Dave95

" They opened their doors and allowed the competition to sell their competing books in the App Store. "

There shouldn't be doors there in the first place... with a lock to which Apple alone holds the key. How else can an eReader app, or anything else, be installed on an iPhone? It's locked down and has no memory card slot.

Eons ago when a Microsoft exec (I forget if it was Gates of Ballmer) was being questioned about Microsoft products using undocumented Windows functions, the exec said "You know, if we wanted to make it so that only our own software ran on Windows, we could do that." He quickly added they wouldn't, but they could. People booed and hissed at the interview and took it as an ominous sign of the dangers to consumers of monopolies. Now here we are many years later, and on the smartphone market, we have finally indeed seen an OS vendor lock down their OS and only allow their own products (or those they allow, who don't compete with them, for a hefty commission) to be installed on devices running their portable OS.

Apple isn't doing Google or Amazon a favor... they're installed a road block in front of what should be direct access to your cell phone and begun demanding tribute money from all those who pass - if they even allow them to pass.
@dave95 I can see the point in charging a fee for the apps. But 30%???? If you created a product, and wanted to sell it at a store (Walmart, BestBuy, whereever), and they said "OK, but we get 30% of the price just for allowing you to sell it here.", would you? I sure as heck wouldn't.

Probably a more accurate analogy is this. If you were running a Farmer's Market, and wanted to use a store's parking lot, but they demanded 30% of your profits for doing so, would you, or would you move to another lot?
@tbuccelli

"Apple WANTED Amazon, B&N, etc BEFORE they had their own bookstore, now that they do, they are changing the rules."

Maybe it was the other way around. Maybe it was Amazon, B&N and Borders who WANTED in on the popular App Store craze. Wanting to gain access to the fast growing iOS users. And Apple probably were developing their own store at the time. We really don't know. But one thing I do know for sure, if the rules or policy were indeed changed like you say, Apple certainly won't be the first company to have ever done so. Just look at Amazon and their stores.

@pdickey043@...

Apple is not taking home 30% directly, after all the fees, bandwidth fees, service and transaction fees for each book store, Apple takes away signifactly less than 30%.

That 30% cut Apple is asking gets you hosting, bandwidth, credit card transaction processing, delivery, reporting, the App Stores ease of use (one-click purchasing), and huge visibility and promotion.

idk, last I heard eBooks sales were outpacing physical books on Amazon and elsewhere. And the Apple App store is just one of many places a Amazon is selling it's massive collection of books. They were doing well before Apple's app store and I'm sure they're doing extraordinarily well now with the help of the app store. I find it hard to believe that Apple's 30% will break them. The smaller players I would worry about but Apple is business out to make profits, not a charity.
@JonathonDoe "It seems Apple wants me to 'pay more and get less'." Unfortunately I have seen this at a corporate level and as a company desicion we have converted all but two of our over one hundred mobile devices to android...I must give thanks to Apple for helping us make the desicion to save money get more and well...have better devices.
I love my iPhone but the next will likely be an android simply because of stupid policies like this
@cymru999

I've got a Droid X and the grass is not greener on the other side of the fence...
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Sure its greener.
cornpie 25th Jul
@itguy10 If you use the Nook app or Kindle app on Android, neither Google nor the carrier charge extra fees to you or the book seller.

By it's actions, Apple is killing one of the reasons I might have considered an iPad over my Nook Color - i.e. on the iPad you could have the apps for the various book sellers and have the all on one device. But this is a deal breaker for those of us who have no need/desire for a tablet and just want an e-reader.
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@cornpie

all you have to do is root the nook and you can install any android app you want on it. do a google
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apple is just too greedy
DiceMoney Updated - 25th Jul
@cymru999 I grabbed the Ipad when it came out, though it was because at that time it was the best available option over the Xoom, but the market is expanding, if my machine gives out. Am never going back into the Apple Garden. I truly don't like Apple ways of doing business.
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I think it's totally fair that a person can go out and buy a phone (not lease or rent it, BUY it) then have the manufacturer tell you what you can, or can't run on it.

We are witnessing the positive benefits of a closed and locked ecosystem.
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Errr
Gis Bun 25th Jul
@William Pharaoh : More like in the direction of fascism.
Sort of like buying a nice car only to find out that you can only drive it on specific highways and city roads.
One reason why I'll never buy anything from Apple.
People use to dislike apps that aren't available on multiple OSs. This is the opposite direction.
I bought the product, I should have the choice of what I want installed on it and not be subject to spitting matches between Apple and Google or Apple and Adobe or Apple and ....
@William Pharaoh Thanks. I'm waiting for the "Why do people hate on Apple so much? What does Apple ever do that's so wrong?" posts.
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...a monopoly tax? happy

Guess the ebook reader apps showing Apple the finger will make Steve Jobs pull those apps from the Apple app store, hmm?

30% is just highway robbery anyway. More fodder for the antitrust folks, I guess.
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A good way to put it
William Pharaoh 25th Jul
@wolf_z
you're right, I never thought of it that way - to use anything on the iPhone, Apple gets a 30% tax.

And yet they complain about their corporate taxes.
in charging a 30% royalty on all its books (it used to be 70% until Apple started selling ebooks).

And, of course, it's totally ethical to put your free ebook app up on iTunes so that Apple eats the bandwidth costs, then use that app to direct people outside of the iTunes store so you get 100% of the sale. Yep, that's all altruistic, noble and selfless, but Apple saying: Hey, if you use your site to make money, you owe us a royalty is evil, greedy and despicable.
@baggins_z

Stop making sense, please.
@baggins_z a 30% royalty?
@baggins_z
The person buying the phone signs up and pays the carriers for use of their network/bandwidth.

Apple makes there money buy selling you the phone that allows you to use that free eBook reader, so how is it costing Apple additional money?

They don't pay out anything from their profit on the sale of the phone.
@baggins_z If There's an easy answer if Apple doesn't want to eat the bandwidth. Just let users purchase apps elsewhere. Oh no, cant' do that! Apple monopolizes the sale of the apps, dictates how they can function, and deliberately makes it more difficult for users to purchase from competitors. I don't understand why people continue to come to Apple's defense.
@baggins_z
Sorry, there is no way of looking at this situation and painting Apple as the victim here. The tiny amount of bandwidth and storage that these ereader apps take up (remember, it is just the app that is stored on Apple's servers, not the content) is more than made up by Apple in hardware sales bolstered by ads that tout the number of apps and number of downloads as a reason why you should buy an iOS device instead of anything else.

This is a money grab, pure and simple. I don't say that to imply that is a bad thing. Apple is duty bound to their shareholders to make the maximum amount of profit possible. Free apps are great for Apple as I described above. Apple makes a ton of money from free apps. The difference is that free apps that give you access to paid content is low hanging fruit for Apple. It is very easy to grab so they are trying to grab it.

What is interesting to me is: how much power does Apple have in the market? If companies are able to say no to Apple while still making a profit on then this is a sign of a competitive marketplace. If companies are basically forced to pay whatever Apple is charging or go out of business, that is the sign of an anti-competitive marketplace.
@jporter1000

"I don't understand why people continue to come to Apple's defense."

-------

I know. It's zealotry plain and simple. Apple is akin to religion for a large number of people.
@baggins_z The reason Amazon is perfectly justified charging for the book is because Amazon is actually selling you the book and letting you download it from their servers using bandwidth that you and they paid for. The book you are buying never touches Apple in any way, so what justifies Apple charging for it? What justifies Apple charging for EVERY book I EVER buy from one of their competitors? The one-time download of the free reader application? Yeah, right. Then, let me download the free reader from Amazon, instead. Oh wait, Evil Apple says we can't do that. Well, screw them. I'll go out of my way to buy ALL my books and music from Amazon, then.
@baggins_z Since when does Apple sell books?
@jgm@...

Um through the iBook Store in iTunes...
@baggins_z What Apple appears to be invoking is something like a corkage fee. Normally a restaurant excludes outside food and beverage. You want to sit at one of our tables you purchase off our menu or you eat somewhere else. However, a high end establishment may offer you the ability to bring your personal choice in beverage, that they themselves don't offer, and charge you a fee to drink it with your meal. The fee originated from the concept of charging you for them to pull the cork out of the bottle for you and supplying you with clean glasses.

In the real world some folks are not happy with corkage fees and other people "get it" and happily pay it. Other people notice such establishments seem to confuse the price for the entire bottle of wine with the cost for a glass of it. happy

The economic realities of the various content stores Apple manages is that they are there to drive hardware sales. Apple makes money off hardware: period. They carefully tinker with the economics of the stores to achieve a break even proposition: they don't make any money selling ebooks/music/movies... but by making these things available for reasonable terms: people buy 100's of millions of devices that fuel their bottom line.
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.........the illiterate masses of course.
Wow what a bunch of whiners. Apple isn't restricting the use of said Apps, only saying you can't make purchases directly on the device. You can still buy eBooks from the other places and then sync them to your iOS device. It's like buying something from Target and having it shipped to Walmart for store pickup.
@jmiller1978

Not even close. This is like seeing something on QVC, calling in to order, and having the the TV maker charge 30%. It costs AAPL nothing except whatever little it costs to host an app for download in the app store, to allow in app purchases outside of AAPL infrastructure. It is a blatant money grab because they can. I resent it because it will make the price of ebooks go up and I bought (and paid for) the phone. I resent being told how I must use hardware I bought. People say they can do what they want because it is their phone, it is not, it is mine.

For tablets I'm gonna stick with my ASUS Transformer. I can easily buy from GOOG, AMZN (who are almost always the low price) and BKS, in fact everybody but AAPL. I have never bought music, video or a book from AAPL and I don't plan to start now.
@rshol +1
Same here. Using both the Transformer and the iPad2, it is amazing how much more I use the ASUS. plain
@rshol

Then you clearly missed the point. You CAN buy from Goole, Amazon, Borders (well maybe not) and B&N all you want and sync to the device and use any eBook reader YOU choose. Why should Apple charge 30% across the board for everything EXCEPT eBooks? As far as low profit in eBooks, I whole-heartedly disagree. You can't for a second tell me that producing one eBook has less profit than formatting, printing and distributing paper copies after Amazon slashes the price to almost eBook prices.
@jmiller1978 They are NOT saying you can't make purchases. They are saying that they get 30% of any purchases you make. They are saying that even though THEY are not selling you the item and THEY are not hosting the item and THEY are not using their bandwidth for the transfer, THEY deserve 30% of the sale. They are doing nothing, but still want 30% of every sale their competitors make for all time. If this is because they were annoyed about hosting the free reader, they should have asked their competitors to charge $0.99 for the reader software OR allowed those competitors to host the free reader on their own servers. This has nothing to do with that. Instead, Apple somehow thinks they deserve to charge 30% for every book I ever buy from their competitors.

Also, don't give me the "hosting a free reader costs Apple money." I don't see Apple charging every time somebody uses a free "fart noise" or game application they downloaded. Plus, the free reader applications were part of the reason Apple sold so many of these devices. My mother-in-law would NOT own an iPad right now if it were not for the free reader applications. She would absolutely be using a Kindle. That is a fact. Apple is making more money from distributing those free reader applications through increased unit sales.

This is a cash grab by greedy a-holes, plain and simple. Some accountant in the company with no sense of logic, fairness, or scale talked them into this idiotic idea. In the end, it will only hurt Apple. I plan to tell everyone I know about this Apple stupidity and do my best to convince them to use Amazon or Google for eBook and music purchases in the future. I will even spend time showing them exactly how to do it. This policy is just plain wrong and shouldn't be tolerated by Apple users, who are literally the only ones being inconvenienced.
@BillDem

From that prospective it seems that way but with Apple knowing that no vendor will do that, they [Apple] just insist they [vendors] remove the function NOT the App because Apple does not want purchases being made from Apps outside of the App Store.
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Don't you just love Apple?
Gis Bun 25th Jul
30% "tax" on anything they sell. And for what?
Surprised there hasn't been an anti-trust investigation or something from the Dept. of Justice.
@Gis Bun Amen. Few things they've ever done have irritated me like this one. I'm sitting here right now staring at my iOS devices and Mac, wondering why I ever bought anything from Apple. I truly wish Android's UI wasn't so inconsistent and counter-intuitive. Right now, Apple seems like that strange uncle who used to be fun, but now seems to be on the verge of insanity and you're wondering what to do with them. Do we commit them? Intervention? What?
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Works Fine on my WinMo6.5 HD2
brucegil@... 25th Jul
I don't have any problems buying ebooks from B&N on my HD2 running Windows Mobile 6.5. (Of course, B&N won't upgrade the reader app for WinMo.) Some times, change is not progress.
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Razor thin Margins?
richard233 Updated - 25th Jul
Pardon my ignorance, but I really don't know how the
money paid for ebooks gets distributed after the fact.
I do know that ebooks are innately designed to be
more profitable than physical books.

Ebooks have a very small cost associated with storage
and transmission to the reader. Plus there are the costs
related to the transaction itself including credit card
charges (about 3%) and whatever it costs to track the
transaction and perhaps the rare service call when a
book is somehow not actually delivered.

Compare that to the costs related to printing, the
materials printed on, the costs of transport (fuel, driver)
and the costs of storage, display, as well as dealing with
returns for damaged and unsold copies (which is why you
see cover less books as it is cheaper to send those back
rather than the entire book).

Add to this the current inability to legally transfer your
book once you are done with it, which in turn requires
other potential readers to either go to the library
(assuming availability) or purchase it themselves
rather than being gifted, long term loaned, or purchased
at a discount from the original purchaser.

So again I ask, the ebooks revenue gets distributed
how? Other than authors of JK Rowlings stature, or the
small self published books, there are "publishers" who do
who only knows what to get their piece of the pie long
before the authors get any real coin.

I'm very willing to believe that many periodicals have a
low profit margin given the costs in gathering news and
performing analysis, especially with a low distribution and
the reduced revenue for advertisements now paid, but for
a piece of fiction?
If this isn't unfair leveraging of one product to promote another, I don't know what is. Time for the lawyers to get involved...
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and people will come to their right mind again and wonder how they could be suckered into a system that charges for everything while lambasts you for not accepting it. It is sad when Microsoft becomes the good guy..
I don't think this is just about greed. I think Apple simply don't want people to look outside iTunes for content. Back in the iPod days Apple was the obvious choice with their music/video store built into the iTunes program which could easily sync with their mp3 players and only their mp3 players.
Today you have tons of choices for getting content. All are multi-platform and most of them don't require syncing or iTunes.

To me this is just Apple trying to put the genie back in the bottle.
... Apple does this to (ostensibly) make the process simpler for the consumer: they only have to remember one username/password -- their Apple ID.

See something you want? Click buy, plug in your Apple ID password and , you've got it. And since you use it for everything -- to buy songs, rent movies, update apps, etc. -- you remember it, so it's easier, more convenient.

Why does Apple do that? And why should it matter to app developers or eBook publishers? Because it makes Apple's devices easier for the consumer to operate, which -- according to sales stats -- has been a strategy that seems to work pretty well for Apple ... and by extension, for anyone who develops an app for an Apple device.

Developers and content producers don't have to produce their products for Apple's devices. They can market only to Android owners, or Windows owners, etc. But before Apple popularized the concept of the App Store and buying stuff from within apps, no one else was making "any" money off any of this. Now multi-million dollar per year businesses exist solely because Apple invested effort and equipment to create the app store.

As I see it, the 30% may seem high, but it's not really high compared to the traditional costs associated with distributing published content -- especially printed content. Publishers get to avoid print bills, distributions bills, returns, damaged goods, storage of inventory, etc. Plus Apple handles the credit card transactions, distribution, security, even a bunch of marketing.

I'm not saying Apple is saint-like or that they couldn't charge less than 30%. They could. But 30% isn't completely out of line. And companies don't have to pay it. They can always sell to consumers with other devices. It's still a free country. Nobody forces them to sell to only Apple customers.
Mr. Jobs has shot himself in the foot with his 30% surcharge. I am amazed that every other web service didn't dump apple right away.
@fredinmx@...

Apple just did 15 billion downloads in the App Store alone and has paid developers a total of $2.5 billion (after the 30% "tax"). I think Steve Jobs will be just fine. wink
0 Votes
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The answer....LET 'EM KNOW
erapka@... 29th Jul
Apple, Google+, Facebook.... all these wanna-be monoliths are continually implementing monopolistic practices...and it's up to us the people to put out a loud enough hue-and-cry to bring them to their senses. Let's face it, they're all in it for the bucks...and will continue to try to quash the competition and re-position themselves. But each time, when WE protest loudly and in unison...they seem to back off. Google+ just adjusted its TOS on names, FB revised its security mechanisms...and I'm sure if enough people express that they're pissed off, Apple will get the message. (Or more accurately, Jobs will...he seems to be exhibiting a lot of very peculiar idiosyncracies re what he wants on desktops and in istores these days, probably owing to him getting up in years when old codgers become imcreasingly intractible.)
So let's keep those cards & letters (or electrons) coming, folks...
EAR

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