Developer Blames Apple For Ruining eBook Business
An anonymous reader writes "A bookseller and app developer has blamed Apple for writing its final chapter, claiming the iPad maker had pushed it out of business. 'Apple has made it completely impossible for anyone but Apple to make a profit selling contemporary ebooks on any iOS device,' BeamItDown said. 'We bet everything on Apple and iOS and then Apple killed us by changing the rules in the middle of the game.' The company blamed Apple's decision to impose a 30% commission on books sold through apps for the unhappy ending."
Well, that's why you don't put all of your apples in one basket (pun intended).
"I have altered the deal. Pray I do not alter it further."
His eBook goes to (Chapter) 11?
Why, without your clothes, you're naked, Miss Dudley!
True, but would you really expect Apple to explicitly say "you are not allow to make any profit selling books on our platform"? From TFA:
* You must sell books from major publishers at the same price as Apple does.
* Those publishers must give you exactly 30% commission.
* iOS booksellers have to give 30% of their revenue to Apple.
Hence enforced 0% profit margin. I don't think you can blame them for thinking that Apple would never go quite *that* far. Of course they should have diversified to Android *anyway*...
While I do not feel bad for the guy, all he is doing is issuing a warning to other companies that are considering doing business with Apple or on IOS devices. This particular business made a bad decision that a little bit of observation of past behavior would have told them would end in tears. However, the point he is making is that Apple encouraged them to develop this market and business strategy, while Apple was already planning to cut the supports out from under it if the business was successful. Apple basically encouraged another business to take the risk of developing a market that Apple intended to steal if it worked out.
The truth is that all men having power ought to be mistrusted. James Madison
They invested significantly in Apple, had a *slightly* profitable business going. Then Apple effectively goes into "price-fixing" anything on the iOS platform, saying no-one can charge more then they do. As well, anything purchased on an iOS device will have to sacrifice %30 on the altar of Jobs. So:
1: a business starts up an app on [insert iOS device here]
2: business starts raking in profits
3: Apple notices, develops it's own app, as well as negotiating lower prices for itself.
4: Apple prices other business right out of it's market, due to %30 fee that affects everyone but Apple.
5: Profit
No ??????, it's pretty much cut and dry, and especially so now that Apple controls all the data mining from their iOS. This alone allows them to choose their battles, because they can see where the money flows. They can choose to try to take %30 of the profit, or all of it.
No one thinks its a bad for a start up company with limited resources to put all its eggs in the Microsoft Windows basket.
Apple has the 80%+ market share with tablets. They have no choice but to rely on Apple for them to remain profitable. Other platforms aren't bringing in enough revenue at the moment to justify the investment.